The Honeymoon's Over: Now What? – When is there termination, withdrawal and compensation?
Posted: Wed Feb 19, 2025 8:52 am
If the initially close relationship between the agency and the client has deteriorated to such an extent that they can no longer work together and, in addition to termination of the contract, the payment of damages for involuntary loss of assets is also on the table, the call for a lawyer will quickly become loud.
If an agency promises to optimize a website and bring it to "number 1 on Google" or makes similarly ambitious promises, it must be held to such assurances and will quickly feel the harshness of the law if its obligations are not fulfilled. In the case of breaches of duty that are not merely insignificant, a contract can usually be terminated. In addition, the client can also demand compensation if the agency culpably violates its obligations or does not keep certain assurances.
Legality as an “iron duty” of the agency – What does the netherlands cell phone number list program of duties in the agency contract include?
If a dispute arises, sometimes even the agencies do not know the extent of their own contractual obligations. This is of course not ideal. Many entrepreneurs and freelancers we advise are shocked when they are told what they are already legally responsible for. One of the most important points is the legality of advertising measures, e.g. with regard to copyright, trademark and competition law. According to the courts, this legality of one's own performance is one of the so-called "cardinal obligations" or "iron duties" of an agency. Whether you are building a website, creating a logo, designing a display ad, writing meta descriptions or setting a link - in all of these cases the agency must ensure that the result delivered is also legal. Very important: Form contracts and liability exclusions are of no use here, because I cannot pass cardinal obligations on to the customer in terms and conditions. This is where the wheat is separated from the chaff. Well-trained and experienced advertisers recognize the risks, keep a watchful eye and, if in doubt, ask an expert, while newcomers often have to pay a high price for their mistakes. If you cannot protect yourself because your business model is based on risky actions, you as an agency or freelancer have to factor these risks into your price. If the client wants something that you consider legally questionable, you can also send a "notice of concern" and tell the client that you advise against the specific measure and that if they want to continue with the measure at all costs, they do so at their own risk. This helps at least in individual cases. But with gray or black SEO businesses, where breaking the law in the form of link purchases and surreptitious advertising is the order of the day and where illegal products are clearly advertised, this does not get you anywhere. Many a customer who suddenly realizes, due to manual penalties from Google, that the expensively purchased links or advertorials are no longer worth anything, or worse, suddenly have to be manually devalued, now asks himself whether he can claim back all that money from “his SEO”. But that will be difficult.
If an agency promises to optimize a website and bring it to "number 1 on Google" or makes similarly ambitious promises, it must be held to such assurances and will quickly feel the harshness of the law if its obligations are not fulfilled. In the case of breaches of duty that are not merely insignificant, a contract can usually be terminated. In addition, the client can also demand compensation if the agency culpably violates its obligations or does not keep certain assurances.
Legality as an “iron duty” of the agency – What does the netherlands cell phone number list program of duties in the agency contract include?
If a dispute arises, sometimes even the agencies do not know the extent of their own contractual obligations. This is of course not ideal. Many entrepreneurs and freelancers we advise are shocked when they are told what they are already legally responsible for. One of the most important points is the legality of advertising measures, e.g. with regard to copyright, trademark and competition law. According to the courts, this legality of one's own performance is one of the so-called "cardinal obligations" or "iron duties" of an agency. Whether you are building a website, creating a logo, designing a display ad, writing meta descriptions or setting a link - in all of these cases the agency must ensure that the result delivered is also legal. Very important: Form contracts and liability exclusions are of no use here, because I cannot pass cardinal obligations on to the customer in terms and conditions. This is where the wheat is separated from the chaff. Well-trained and experienced advertisers recognize the risks, keep a watchful eye and, if in doubt, ask an expert, while newcomers often have to pay a high price for their mistakes. If you cannot protect yourself because your business model is based on risky actions, you as an agency or freelancer have to factor these risks into your price. If the client wants something that you consider legally questionable, you can also send a "notice of concern" and tell the client that you advise against the specific measure and that if they want to continue with the measure at all costs, they do so at their own risk. This helps at least in individual cases. But with gray or black SEO businesses, where breaking the law in the form of link purchases and surreptitious advertising is the order of the day and where illegal products are clearly advertised, this does not get you anywhere. Many a customer who suddenly realizes, due to manual penalties from Google, that the expensively purchased links or advertorials are no longer worth anything, or worse, suddenly have to be manually devalued, now asks himself whether he can claim back all that money from “his SEO”. But that will be difficult.