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An agreement between a party, called Sponsor and those entitled to enforce the sponsorship obligation is called a Sponsorship Agreement (or contract). Sponsorship agreement contains the number of terms and conditions. Generally, it is adopted as a marketing strategy as it involves the payment of sponsorship fees in return for a publicity related benefits. The sponsorship agreement is being adopted by both the parties as it balances the interest of both the parties.
A well-drafted sponsorship agreement must have the following clauses:-
Term of Contract
The term of this contract when it shall commence and the tenure till when it will be in force or where either of the parties terminates pursuant to the terms and conditions of this contract.
What are the benefits that organizer is agreed to grant to the sponsor? Whether the rights granted are exclusive or non- exclusive. A complete list of rights should be given in the agreement.
Both the parties will endeavor to conduct itself in a manner so as to present a professional and high-quality promotion and image of the event.
All the events pertaining to the sponsorship must be the list out in the agreement; like
In respect of any advertising materials produced by [Sponsor Name] containing any corporate identification, [Sponsor Name] must obtain the approval of organizer before the advertising materials. Such approval will not be unreasonably withheld or delayed.
In consideration of the Rights and Benefits granted to [Sponsor Name], and the obligations to be performed by organizer under this Agreement, [Sponsor Name] will pay to the organizer the sponsorship monies in the installments and on or before the dates as set out in the Sponsorship Monies Payment Schedule below detailed:-
The parties must provide each other with all documentation required to claim an Input Tax Credit, set off, rebate or refund for or in relation to any GST included in any payment made under this Agreement.
Organizer indemnifies [Sponsor Name] against any claim, action, damage, loss, liability, cost or expense that [Sponsor Name] may suffer, pay, incur or is liable for directly or indirectly by reason of or in any way arising out of or in connection with:
[Sponsor Name] indemnifies organizer against any claim, action, damage, loss, liability, cost or expense that [NF Name] may suffer, pay, incur or is liable for directly or indirectly by reason of or in any way arising out of or in connection with:
Either [Sponsor Name] or [Organizer name] may immediately terminate this Agreement by written notice if:
No amendment or variation of this Agreement is valid or binding on a party unless in writing and executed by all parties.
Other clauses that may be covered are as follows:-