Head of practice
Attorney. Specialist in commercial and labor law. Over 16 years of experience in legal support of businesses - debt recovery, contract enforcement, recovery of damages, commercial property and lease disputes.
Advertising services agreement
What is an advertising services agreement?
A new version of the Law of Ukraine “On Advertising” has come into force in Ukraine, which defines the basic requirements for advertising goods and services. Therefore, agreements concluded between business entities in this area must take into account the norms defined in this law.
A separate agreement on the provision of advertising services is not provided for in the Civil Code of Ukraine, although a separate Chapter 63 is allocated to it as a type of service agreement. Therefore, based on the analysis of the above provisions, we can briefly formulate a definition of this agreement.
An advertising services agreement is a formal agreement between two parties, under which one (the Advertiser) must provide an advertising service within the time frame and on the terms specified in the agreement to the other (the Advertiser) for an appropriate fee. It is also worth highlighting the features of this agreement, which are expressed in the following:
- firstly, the advertiser (or the customer of the service) retains the obligation to obtain licenses for the advertiser (i.e. the contractor under the agreement) to advertise individual goods or services (for example, organizing gambling);
- secondly, the advertiser can either engage in purely advertising placement (on the Internet, on outdoor banners, etc.), or develop relevant graphic and video materials (this will need to be clearly stated in the clause of the agreement);
- finally, to provide relevant services, the advertiser must be registered as a business entity (company, individual entrepreneur, etc.) and conduct its activities under KVED 73.1 accordingly.
Key points of the contract for the provision of advertising services
Let's consider in more detail the requirements for the obligations of counterparties, liability for improper provision of advertising services and termination of the contract.
In general, the legal interaction between the Advertiser and the Advertiser under the contract for the provision of advertising services can be described as follows:
- Advertiser's obligations: development, creation and placement of advertising materials in accordance with the technical specifications; high-quality and timely provision of advertising services in accordance with the agreed media plan; compliance with the Advertiser's stylistic, graphic, and other requirements for advertising; preliminary approval of advertising materials and distribution channels; making changes and adjustments in accordance with reasonable requirements. In addition, depending on the specific advertising service provided by the Advertiser, he will be responsible for: design, production, preparation of advertising (Advertiser-producer); time and place of advertising placement (Advertiser-distributor);
- responsibilities of the Advertiser: to timely transfer the necessary materials (text, graphic, audio and video materials) to the Advertiser; to provide reliable information for creating content, including a description of goods or services; to coordinate the technical specifications and advertising requirements with the Advertiser; to make payments under the contract within the specified time limits and in full; to pay the Advertiser's additional costs (if this is directly provided for in the agreement).
It is worth noting that in the event of improper fulfillment of obligations under prior agreements (for example, in the case of violation of the terms of placement of advertising in the media), the Advertiser has the right to terminate the contract with the Advertiser unilaterally. Then, depending on how the settlement in this case is regulated in the content of the agreement, either part of the amount that should have been paid for the services (if the advertising materials were actually created) will be subject to payment, or the payment will not be made to the Advertiser.
For violation of the terms of the contract, the Advertiser will also be liable, which is usually carried out in the form of:
- a fine (or penalty) - for untimely performance;
- compensation for damages - if there are financial losses of the party to the agreement;
- initiation of judicial recovery of compensation (if the parties cannot resolve the dispute out of court).
Support from a lawyer “Prikhodko & Partners” in the development of an agreement for the provision of advertising services
The law firm “Prikhodko & Partners” provides professional assistance in the development and support of an agreement for the provision of advertising services, which allows minimizing risks and ensuring the protection of the rights and interests of the parties. Our lawyers provide comprehensive support, which is expressed in:
- first, analysis of the client’s request (taking into account the type of advertising services, the desired format of materials and other special conditions for the implementation of future agreements);
- secondly, creating a draft contract (we describe in detail the subject of the contract, the rights, and obligations of the parties, the procedure for settlements, requirements for advertising materials, the liability of counterparties, termination conditions, etc.);
- thirdly, legal analysis of the contract from the counterparty, if necessary (identifying potential risks and hidden obligations for the other party, checking compliance with legislation, making changes or additions to the new version to protect the interests of the client).
Conclusions. An advertising services agreement is an important tool for regulating relations between the advertiser and the advertiser. To develop and analyze such an agreement, it is recommended to contact lawyers who have qualifications and relevant professional experience. This will help minimize risks and ensure the protection of your rights and interests.
Contact us today and we will help you conclude a profitable and safe contract for the provision of advertising services! To receive a lawyer’s consultation – fill out the form below.
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