Many public relations firms have a preferred form of client contract. Clients hiring a public relations firm, especially for larger engagements, often insist using its own form of contract. In these instances, public relations firms still need to be mindful of the common pitfalls (and solutions) when using the clients form of agreement. This article will address the four most common pitfalls and the pragmatic solutions.
THE ONE-SIDED LOL – IT’S NOT THAT FUNNY
Problem: The agency-client agreement should include two types of a limitation of liability (“LOL”). The first is a waiver of all indirect, incidental, and similar damages, including lost profits or revenues. This is intended to prevent either party from claiming damages such as lost sales for most circumstances.