Reproduced from practical law with the permission of publishers. For more information, see www.practicallaw.com. Each sponsorship contract is unique. The above list is not exhaustive and companies are invited to consult with their legal advisors when developing and negotiating sponsorship agreements. This trend is not limited to long-term ppp agreements and alliance agreements. It is also seen in standard contracts, such as. B in the expression “mutual trust and cooperation” in the NEC ECC contracts and (if selected) the complementary collaborative formulation in the JCT: information specific to Spain on the main legal issues that must be taken into account when signing a sponsorship agreement. If the sponsorship is significant, the parties may consider entering into a sponsorship agreement. Some organizations may consider implementing an internal policy where an internal sponsorship agreement is required for each financial donation above a certain threshold (for example. B gifts over $5,000).
Sponsorship agreements generally require the promoter to make a payment or other in-kind donation to the recipient and to describe the conditions under which such payments are made (for example. B, to whom the payment is made, in what form and on what date). As a general rule, the agreements also describe the recognition or other rights that the promoter may obtain as a result of the donation. In all longer-term contractual relationships, whether an obligation is explicit or implied (for example. B on the basis of an agreement considered relational), the parties should remain faithful to the requirement to consider themselves “commercially acceptable” throughout the life cycle of the contract, in a manner that can be considered “commercially acceptable”. (and not just that the parties have to be honest). It provided a list of factors that support the identification of a relationship contract, although it did not provide much concrete guidance on the practical scope of the good faith commitment. This is why the recent case of New Balance Athletics, Inc. against Liverpool Football Club and Athletic Grounds Ltd is particularly interesting, since the court examined in detail, after Bates, which could mean a tacit duty of good faith in practice. Under the contribution of Allen – Gledhill Partners Tham Kok Leong and Alexander Yap, “Sponsorship Q-A: Singapore” provides an overview of Singapore-specific information on important legal issues that should be taken into account when entering into a sponsorship agreement.
Intellectual property rights, competition law and sponsorship agreements are among the topics discussed in this question-and-answer session. The case concerned the renewal of a sponsorship contract between New Balance Athletics and FC Liverpool. Liverpool were required to negotiate first with New Balance the extension of the agreement (the first trading period). If no agreement is reached during the first negotiating period, Liverpool could enter into negotiations with a third party. However, if these negotiations with a third party resulted in an offer, New Balance had the right to respond to that third party`s offer.