Advertising services agreement: consequences of violations and court practice
Content of the article
Content of the article
Currently, we can observe the active work of influencers and the development of the digital environment, social networks, and media. Brand founders are increasingly promoting their products and services through various advertising channels.
The terms and conditions for the provision of advertising services are set out in a contract. However, the parties do not always comply with the agreements, which is why we can see cases being brought to court. In this article, we provide several examples of legal disputes concerning violations of the terms and conditions for the provision of advertising services.
Case No. 1. “ALLO” collected debt from the advertising agency “INTERA”
The advertising agency undertook to provide “ALLO” with services for promoting the “ALLO” and “MI” trademarks on the “1+1” television channel within the framework of the program and/or program announcements.
The services were not provided in full, so “ALLO” recovered the advance payment for the services in the amount of UAH 1,400,506.16 from “INTERA” through the courts.
In addition, by court decision, the advertising agency was ordered to pay “ALLO” 3% per annum, inflation losses, court fees, and legal aid costs. The total amount is approximately UAH 129,000.
Case No. 2. The court seized the property and funds of individual entrepreneur Natalia Shtaltovna
The private educational institution “US CAMPUS O” (advertising customer) filed a lawsuit with the Kyiv City Court against individual entrepreneur Natalia Vyacheslavivna Shtaltovna to recover UAH 2,466,874.52 under an advertising services agreement.
The court granted “US CAMPUS O’s” request for measures to secure the claim and seized the individual entrepreneur’s property and funds in bank accounts or other credit and financial institutions, within the limits of the amount claimed.
The case is currently being considered by the commercial court and no decision has been made.
Case No. 3. The court denied the advertising customer’s claim for payment under a verbal agreement
The advertiser did not provide the court with sufficient evidence of the existence of a contractual relationship between it and the defendant, or of the provision of clothing for the creation of advertising content.
In addition, it was not proven that the contract had been performed in whole or in part, or that actions had been taken that would indicate the actual conclusion of the contract.
The court did not accept printouts of electronic correspondence in the Telegram messenger, because such printouts do not make it possible to reliably establish who the authors of the correspondence are.
Conclusions
Therefore, a written contract for the provision of advertising services is a tool for protecting the interests of both parties. Concluding such a contract is important for several reasons:
- protection – the contract serves as proof of agreements in the event of disputes;
- clarity of terms – it sets out the payment procedure, deadlines, scope and stages of service provision, liability, and other terms;
- performance control – a signed agreement allows you to track the stages of service provision and payment, and to record the fact that the services have been accepted.
Published by Liga.net
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