A marketing agreement may be defined as a legally binding agreement that defines the relationship between two parties – a business or sole traders and a party providing marketing services (marketer), which can be a marketing agency or an individual. Such an agreement is premised on the payment of a certain sum of money agreed upon by the parties in exchange of the promotion of the goods or services of the other party to the contract.
As we embrace technology and the digital world, most companies are shying away from the olden ways of marketing their products and resorting to using well known musicians, actors and socialites to advertise and market their products. Some of these celebrities refer to themselves as brand ambassadors and as such companies need to have agreements in place with such individuals.
The marketing contract regulates the conduct of the parties as well as states the expectations of both parties. Depending on the celebrity selected and the product being sold, companies tend to look for a face that clicks with their target market and has a decent social media presence, as the world is moving toward technology. The more social media followers (Facebook, Instagram and Twitter one has the more their chances of an endorsement to market one’s products.
One may note that such an agreement is legally enforceable where it is properly executed and abides with the principles of contract law as well as the provisions of the law in general.
ESSENTIALS OF A CONTRACT OF THIS NATURE
Most Marketing agreements tend to contain the following information:
- Clearly identified parties (names, surnames, identity particulars and company registration numbers amongst other information).
- The term (duration) of the contract – parties can highlight when the contract commences and when it ends.
- The agreement must clearly state the services to be provided by the marketer – in the event that it is posts, short drama, song or anything else that promotes the business, it must be clearly stated and quantified.
- Duties and obligations of all the parties to the agreement.
- Fees payable to the marketer.
- Warranties – clause where parties guarantee that they have the capacity and authority to enter into the agreement.
- Indemnification
- Confidentiality clause – in the event that some trade secrets are discovered by the marketer the other party should be assured that their trade secrets should remain unknown to their competitors. Breach clause – that will cater to what happens in the event that the parties do not uphold or adhere to their respective roles and functions.
- Applicable law – In the event that intellectual property is created ownership must be established.
- Jurisdiction – in the event of a dispute arises that cannot be resolved by the parties.
The items listed above are not exhaustive but are formulated to give the reader of the essence of a marketing agreement.
For all your contracts please feel free to contact our team that is ready to advise accordingly and assist with drafting your agreements.
This is for general information purposes only.
