Renewal Decisions
Part of Agency contracts and scope
Reviewing cancellation and notice terms
Cancellation terms should tell both parties what happens if the work ends early.
Cancellation terms should state what happens if the work ends early. Read them alongside renewal, payment and handover provisions: a reasonable-looking notice period can still be costly when another clause adds a large exit fee or blocks access to files.
Walk through an exit date
Choose a hypothetical date midway through the engagement. When must notice be given, in what form and to whom? Does the contract renew automatically?
Which fees remain payable, and for what work? What happens to media spend, prepaid services and unfinished deliverables? Who can pause live campaigns while the notice period runs?
Write the answers in a simple timeline before signing.
Check whether the agency or client can terminate for breach, and whether there is a chance to remedy a problem. Look for asymmetry: one party may have broad discretion while the other is locked in.
The ACCC helps consumers and businesses understand the law on unfair contract terms. It can investigate and may take compliance or enforcement action to protect consumers and small businesses from unfair terms in standard-form contracts. It does not investigate individual complaints or give legal advice.
Key Steps in Planning an Exit Date
- Choose hypothetical exit date
- Midway through engagement
- Determine notice deadline and method
- Must be given in writing to designated contact
- Check for automatic renewal
- Contract may renew unless cancelled in time
- Identify fees payable during notice period
- Includes work completed, prepaid services, and potential exit fees
- Confirm right to remedy breach
- One party may have chance to fix issues before termination
Asymmetry in Termination Rights
- Client termination rightsMay need to provide notice and pay fees; limited ability to cancel for breach
- Agency termination rightsMay terminate for breach with less restriction; broader discretion
ACCC Guidance on Unfair Contract Terms
- Enforcement authority
- ACCC can investigate and take action against unfair terms
- Scope of protection
- Focuses on small businesses and consumers in standard-form contracts
- No individual advice
- ACCC does not handle complaints or give legal advice
Plan the handover
Set dates for delivering final work, editable files, access credentials, account administration and data exports. Identify third-party licences that cannot simply be transferred. Agree how transition assistance is charged, if needed. A right to cancel is much less useful if the client cannot keep operating afterwards.
Before signing, confirm the notice deadline, required delivery method and recipient, any chance to remedy a breach, fees payable during the notice period, and whether termination triggers an additional charge.
Pre-Signing Handover Plan Checklist
- Final deliverables due dateAgreed by both parties
- Editable files deliveryInclude all source files and formats
- Access credentials transferProvide login details for accounts and platforms
- Data export and ownershipConfirm data can be extracted and retained
- Third-party licences reviewSome cannot be transferred; require new arrangements
- Transition assistance termsClarify if support is included or billed separately
