Sunday, July 11, 2010

Can I cancel an advertising contract?

My friend and I signed a one year advertising contract with a Spanish Radio Station in Reno. This contract states that it is a non-cancellable contract. My friend already had her day in court and the radio station did not win she only had to pay for the time her commericals aired. The reason I am cancelling is because this person withheld crucial information needed when making a long term committment to him. I had a hunch that this person was a "bad business man." He runs his radio station as a non profit business and there is nothing that is non profit about it. He owns a church and I think this is how he was able to pass the exception to his other numerous radio stations to list them as non profit. I am so scared I have never been in court and I wasn't sure if there was a certain general rule about cancelling a contract? It was a nightmare to get his business license number. He does not diplay it at the office and righfully so he doesn't want anyone knowing of his scame.

Can I cancel an advertising contract?
Was contract signed under the British law or Spanish one ? if British, you may under unfair contract terms.
Reply:... "general rule about cancelling a contract"





well, yes there is ..


You must have real grounds for cancellation ...





Typically this might be, for example 'non-performance' or 'not up to standard' ... or even misleading audience figures (numbers, demographics etc.)





For sure I am unable to see how his dubious (or even criminal) business profit/loss / charitable status is any grounds for cancellation .. ..





Did he air your adverts as required under the contract ? Were they of the appropriate length / standard etc. ? Did they address the expected audience ?





If 'yes' then what are your grounds for refusing to continue the contract ?





As to the Contract itself = well, yes it would seem rather unfair .. but then you freely admit that you knew it was 'non-cancellable', so again I'm unsure exactly what your argument is ...
Reply:us law may be different but here in the uk although you may have signed a contract that is 'one sided' any court will recognise what is called an 'onerous contract' under european law and rule in your favour and maybe even award you costs


however, it would be fair to recognise that the radio station has genuinely incurred some costs.


scripting and producing your commercial and the cost of a voice artist and possibly musicians or the rights to use a piece of music.


all that would cost around $500 or so.


why not ask for a refund minus the production costs?


working in the business i'd say that 1 in 4 clients cancel before their commercials go to air but i always warn them that once we commision the voice artist and produce the commercial they will have to pay the production costs.


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