Deposit Terms

What it means

This contract defines a deposit, signing fee, advance, or retainer payable to you before substantive work begins. A deposit is typically a protective feature because it secures part of your cashflow at contract execution. The strength of the protection depends on three things: the size of the deposit relative to the total fee, whether it is refundable, and whether it is conditional on factors outside your control.

A non-refundable payment on signing means you are paid something even if the deal is cancelled later. It underwrites the calendar time you set aside, reduces the impact of cancellation, and gives you a firm financial position from contract execution. A refundable or conditional deposit is functionally weaker; the brand can recover the payment under defined triggers, which removes much of the protective value. Where a deposit is small or conditional, the other payment risks in the contract (kill fee, contingency, milestone clarity) become correspondingly more important.

What to check before you sign

• ·Is the deposit non-refundable in all circumstances, or refundable under defined triggers?
• ·What percentage of the total fee does the deposit represent?
• ·Is the deposit payable on signing, or contingent on other events (kick-off, pre-production approval)?
• ·Does the deposit have an explicit timing window (e.g., a set number of days after signing)?
• ·Is the deposit credited against the final fee, or paid in addition to it?
• ·Is the deposit conditional on brand satisfaction or content approval?

How to fix it

• Remove the refundability provisions and make the deposit unconditionally non-refundable on signing. Most often the cleanest single fix.

• Negotiate the deposit up from a small percentage to a substantive one that materially underwrites the production work.

• Add an explicit timing window for deposit payment (e.g., a set number of days after contract execution), rather than leaving the timing implied.

• Where the brand resists a "deposit" structure, ask for a non-refundable signing fee separately labelled, which often passes procurement more easily than a deposit structure.

Negotiating it

Related clauses

• No Kill Fee on Termination
• Clawback Rights on Paid Fees
• Payment Milestones Undefined
• Extended Payment Terms