Sponsorship is a type of legal business between two parties. The sponsor provides funds, services, or other benefits to the sponsee's party. The party that gets these benefits has to give some rights or services to the sponsor in exchange for their input.
To sponsor certain events, both parties sign a contract to keep everything legal and fulfill the needs of each party. In this article, the reader will learn more about the sponsorship contract, its clauses, and other valuable things.
What is the Sponsorship Contract?
In the current business world, marketing and advertising techniques have evolved impressively. By looking at the past, a prominent difference can be observed in the marketing field. One of the significant changes is brought by sponsorships. The company that requires certain products or money for an event and is unable to pay demands a particular company for sponsorships.
In this way, a company gets the product and provides them some rights or allows them to advertise their product in the event. For such occasions, there is a legal document that has to be signed to get the sponsorships. A sponsorship agreement is a signed document between two companies. This contract provides benefits to both of the parties.
This document is signed when sponsoring a marketing affair, charity events, sports galas, and many others. This contract protects the rights and benefits of both companies involved in the sponsorship. The sponsorship contracts provide a clear image of all the requirements of the sponsors.
This signed contract gives a solid base to the sponsors and builds up their trust towards the sponsee’s company. With the help of this pact, both teams can avoid any future misunderstandings and conflicts. This document acts as a sign of professionalism for the parties.
Terms and Conditions in a Sponsorship Contract
In a sponsorship agreement form, there are different terms and conditions stated that are needed to be read before signing the contract. Some of these clauses are as follows:
- Compulsions of Sponsee and Sponsor: Under this clause, the responsibilities of the sponsee, as well as the sponsor, are mentioned. These are the duties that have to be performed until the contract is terminated.
- Use of Sponsor’s Trademark: The sponsor permits the sponsee to use his company's logo, trademark, or any material available for the advertisement of the sponsor. These trademarks are used during the entire sponsored event.
- No Responsibility of the Sponsee: According to this clause, the sponsee is not considered guilty if any property of the sponsor is harmed or if any employee is injured during the event. This clause does not apply to the scenarios where misbehavior is done on purpose by the sponsee.
- Termination of Contract: The contract is finished if sponsee feels to end it due to any reason. The sponsee has to return the money, tools, software, and hardware borrowed from the sponsor for the event. The sponsor can also terminate the contract if he feels the sponsee is not following the agreement.
Checklist When Signing the Sponsorship Contract
Before signing any contract, it is a must to check the document thoroughly to avoid future disputes and conflicts. The things that are needed to be checked before signing a sponsorship contract are as follows:
- Important Dates: Before finalizing the contract, both parties must check all the dates related to the event. These dates may include the starting and ending date of the event and that of the agreement.
- Name and Contact information: It is very important to check the name of both the sponsor and the right holder. The complete contact details must be provided.
- Amount paid by Sponsor: It is necessary to check the fee amount that is going to be paid by the sponsor to reduce the chance of misunderstandings.
- Clear Statements: The participants must mention that this contract is just in between two parties. There is no joint-venture or other partnerships involved.
- Rights of the Sponsor: The sponsors must verify all the rights that are given to them. These are rights that are given by the rights holder after mutual understandings.
- Details of Laws: Both the parties should confirm the law, i.e., state, national or provincial law, according to which the agreement will be ruled.
How to Fill Out a Sponsorship Contract Online
In social events, finding a sponsor is one of the most important milestones. Following are some of the steps to be taken to fill out this contract.
- Specify the Benefit for the Sponsor: It is necessary to show some advantages that the sponsor will get in sponsoring the particular event. The sponsor should believe that there is mutual benefit for both parties.
- Preparing the Document: After formulating all the specifications, it is time to prepare the document. For this purpose, the user can use an impressive tool under the name of CocoDoc. This platform provides a simple sponsorship agreement template and samples that would ease this job.
- Adding Different Fields: By using the online platform, the user can add different fields in form according to the requirement. Usually, the basic design of the form includes name, phone number, address, start, and end date.
- Inserting Fields for Major Details: The user can use the online software to insert fields related to sponsorship information. These fields may ask for information that includes the fee to be paid, donations, trademarks to be used, and others.
- Publishing the Document: After the completion of the document, the online tool enables the user to download the document into the device or email it directly to anyone.
It would not be wrong to say that this agreement should be considered a vital element when sponsoring an event. It reduces the chances of disputes between the parties and acts as a beneficiary element for both the sponsor and the right holder.
This article provides sufficient information regarding the sponsorship contract to the reader. One can use a sponsorship agreement template or sponsorship contract sample to create his version of this contract. These templates are widely available over the internet.