Essential clauses of endorsement agreement

1. Essential Clauses of Endorsement
Agreement

2. ● Introduction
Endorsement agreement is a contract that allows an organization to use a celebrity’s name and
reputation to promote a product or such services.
● Who takes the Endorsement Agreement ?
People involved in an endorse agreement include the company that owns the product and the endorser
or the celebrity who promotes the product.
● Purpose of the Endorsement Agreement
The most important purpose of the endorsement agreement is to promote the product or service using
the famous figures in the industry

3. ● Contents of the Endorsement Agreement
When we look into an endorsement agreement sample, it is either of sports or celebrity. When we
come to sports endorsement, the agreement includes the various clauses such as public appearance
clause, exclusivity clause and compensation clause.
● What points should be considered before signing the Endorsement
Agreement ?
In case of Sports Endorsement Agreement
When an endorser agrees to sign the agreement then he or she should understand the terms and
conditions of the contract
In case of Celebrity Endorsement Agreement
When it comes to celebrity endorsement, the celebrity should understand the obligations of the
contract

4. ● Benefits and Drawbacks of the Endorsement Agreement
Benefits
1. Using famous figures helps the brand to show that they better from the others.
2. Product Endorsement helps in building brand credibility
Drawbacks
1. Endorsers are very expensive to promote a product of a company.
2. Products which are bad would never gets support for the endorsement.
● Important Clauses of an Endorsement Agreement
● Parties,
● Term,
● Indemnity,
● Dispute Resolution,
● Termination,

5. ● Duties of celebrity,
● Consideration,
● Exclusivity,
● Moral clause,
● Insurance,
● Obligation of the company,
● Intellectual Property,
● Confidentiality
● Definitions and Interpretations,
● Territory
● What happens in case of violation ?
Both parties have the right to terminate the contract. When a company fails to meet the terms given in
the contract, then the endorser can terminate the agreement or file a case against the company.

6. ● Conclusion
Endorsement Agreement is usually done between the celebrities and the companies or with the sports
idols. Endorsement Agreement helps to promote the product and services of the company.