Terms of Business Template for Agency Businesses (UK 2025)

Why Agency Businesses Need a Terms of Business

Agency terms of business provide the standard commercial framework for all client engagements, covering payment terms, intellectual property transfer, liability limitations, and the agency's right to use work for promotional purposes. These terms sit above individual project SOWs and provide consistency across the agency's client relationships. They must address the common agency challenges of late payment, scope creep through informal requests, and the need to protect creative work until payment is received.

Key Clauses for Agency

• Payment terms with late payment interest provisions
• IP retention until full payment is received
• Liability cap appropriate for creative and digital services
• Right to showcase work for agency promotion and awards

Common Mistakes

• Not including IP retention until payment, removing the agency's primary commercial leverage
• Failing to address how informal client requests via email or messaging are handled within the scope and billing framework

Template Sections

• Payment terms and late payment provisions
• IP ownership and transfer conditions
• Liability limitations and exclusions