Contract Termination Agreements – Guidelines and best practices for marketers when dealing with agencies
Q Do you have any contract-related information on the standard notice-of-termination period a client should give its agency?
A The termination period is negotiable. An initial contract period of one year, followed by a 90-day termination notice, was once standard. Today, however, many contracts are written with only a termination notice. The responsibilities of the agency during the termination period should be spelled out fully, particularly if the agency continues to receive a contracted monthly fee.
There may also be stipulations about termination or suspension of specific work on behalf of the client. It is essential to understand, in writing, that such steps may be instituted should the contract be terminated. The contract will therefore establish the framework for handling the termination notification and all final expenses. It should also be understood that any modification of the contract may be enacted by mutual consent if it is submitted in writing and signed by both parties.