Every business needs to ensure they have formed proper contracts with their respective partners. However, the types of contracts that you will form may vary depending on the type of business. If you are running a media agency, there are specific contracts you should be aware of. This article will outline what those contracts are and how you should draft them.
Why Do I Need Contracts?
A contract is a legally binding document that defines the rights and duties of two or more parties. Contracts are essential as they are enforceable by the law. If one party breaches their contract, the other party can seek remedies if that loss ensues.
What Are the Critical Contracts for My Business?
The central contracts that are useful for a media agency include:
- client agreements;
- lease agreements; and
- contractor agreements.
Client Agreement
One of the most important contracts you will need if you are involved in a media agency is the client agreement. The client agreement is the legal document that will underpin your relationship with all your clients. This is an essential agreement as attracting and retaining clients is how your business will make money. A client agreement is imperative if you run a media design agency as your customer is your biggest asset. The client agreement should contain:
- the cost of the service;
- how long you will provide the service for;
- what type of service;
- delivery dates; and
- refund clauses.
It is vital that your client agreement clearly states what and how you will provide your service. You should always carefully review your client agreement to ensure it keeps up with any modifications you have made with your client. It is also prudent to add a termination clause in your agreement if your client does not uphold their obligations. This means you can terminate the agreement in certain situations. However, beware that your client will also be able to terminate the agreement if you do not uphold your obligations.
Lease Agreement
If you run a media agency, you are likely leasing some sort of space for your business. If this is the case, you will be bound to a lease agreement. A lease agreement outlines specific aspects of the lease, such as:
- the length of lease;
- what is being leased;
- any renewal options; and
- the cost of the lease.
As a media agency, you may not need as much space, so you could consider subleasing. Sub-leasing is leasing off somebody who already has a lease contract with a landlord. This method allows you to rent a smaller space or rent for a shorter period. A sub-lease agreement acts the same way as your lease agreement, except the person you are subletting from becomes your landlord.
Another condition you should consider is how to break your lease. There may be a situation where you want to cancel your lease before the agreed expiry date. Your lease agreement may allow for this in certain circumstances. For example, the landlord may ask you to find new tenants.
Contractor Agreement
If you are running a media agency, you are also likely to have contractor agreements. Indeed, you may not need to have full-time staff all the time. A contractor is a person that you temporarily work with to achieve an outcome. For example, you might hire a designer to design a billboard for a client. A contractor agreement will underpin the rights and obligations of yourself and the contractor.
An essential part of the contractor agreement is making sure your intellectual property is protected. There should be a clause in your contract stating that you own any intellectual property created by your contractor. Otherwise, your contractor may be able to take that property and use it for their benefit.
Like the client agreement, it is a good idea to ensure that there is an option to cancel your agreement if you need to. You may need this option if you do not need your contractor anymore or do not uphold their obligations.
Continue reading this article below the formKey Takeaways
Having the proper contracts is vital for your business’ success. If you are running a media agency, you should have a client agreement, a lease agreement, and a contractor agreement. In the event that the other party breaches the contract, the court may order damages or specific performance.
If you need any legal assistance with contracts, contact LegalVision’s contract lawyers on 0800 005 570 or fill out the form on this page.
Frequently Asked Questions
No, if you are on a fixed-term lease, then you cannot cancel at any time. You may be required to transfer the lease to someone else if you want to break it.
No, contractors are not bound by employment law. This is one of the many reasons why using a contractor is so popular.
We appreciate your feedback – your submission has been successfully received.
