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← Legal Guides 14 May 2026

Marketing Agency Failed to Deliver? Letter of Demand for a Refund

When a marketing agency takes your retainer and produces nothing of value, a Letter of Demand is the formal step that recovers fees and exits the contract.

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You signed a retainer with a marketing agency. Three or six months in, the deliverables promised in the proposal — campaigns launched, content produced, ad spend managed, reporting delivered — have not materialised. Maybe you got slide decks instead of campaigns, or a junior account manager instead of the senior team you were sold. Either way, you are paying for outputs you are not receiving.

Agency retainers are services contracts and they are enforceable. The fact that marketing outcomes are uncertain does not give the agency a free pass on the inputs it agreed to deliver — the campaigns, hours, deliverables and reporting all flow from the signed scope.

The legal context

The agency owes contractual obligations of performance to scope and the implied common-law obligation of reasonable skill and care. Where you are a small business buying agency services within the Australian Consumer Law’s small-business thresholds, the services guarantees in the ACL also apply — services must be supplied with due care and skill and be fit for the purpose disclosed. Failure to deliver the contracted scope is breach, full stop.

Common pushbacks and why they fail

  • “Marketing takes time.” True for outcomes. Not true for the agreed deliverables — the campaigns, content, hours and reports.
  • “Cancellation fee applies.” Cancellation provisions do not apply where the agency is in material breach. Their breach, not your decision.
  • “Strategy work was performed.” If the strategy never produced the deliverables it was meant to inform, its standalone value is limited.
  • “You did not provide assets.” Genuine client-side bottlenecks are documented at the time. Late invocation rarely lands.

The document and what it does

A Letter of Demand identifies the retainer, the scope agreed, the deliverables missing, the fees paid and the remedy claimed — refund of fees for undelivered work, release from any further commitment, and damages for additional procurement cost. It sets a 14-day deadline and signals tribunal or court action to follow.

What Claim Done delivers

  • Retainer and scope captured precisely
  • Deliverables-versus-delivered analysis with dates and dollar values
  • Citation of the ACL services guarantees where applicable
  • Quantified refund and damages claim
  • Drafted and sent on letterhead for a flat $79

What to expect after

Agencies that have been coasting on a retainer rarely want a public dispute. Most settle within two weeks of a Letter of Demand, often refunding the most recent quarter’s fees and releasing both parties from the contract. If they refuse, a Final Demand ($79) and a small claims tribunal filing escalate at low cost.

Don't Let Them Off the Hook.

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