Analysis of Legal Nature, Descriptions and Hazards of Endorsement Contracts with Celebrities

Document Type : Research Paper

Authors

Bu-ali sina univercity

Abstract

Exploitation of celebrities’ image in commercial advertisement is one of the most influential tools in identifying products to consumer. Most of the endorsement companies use this kind of advertising for identifying products. Celebrities have a great tendency to conclude endorsement contract with companies, since obtaining revenue from this contracts is higher than other contracts. Nature of this contracts in comparison to other similar contracts are described in the form of article10 of civil code. Although exploitation of celebrities’ image has a great impact on consumers’ attention to buy products, companies are at risk that celebrities’ engaging in unethical activities can damage their fame, and have a negative impact on consumers’ view. As a result, endorsement companies use clauses like moral clauses, claw-back clauses or liquidated damage to protect their capital and fame. Also, celebrities are facing the danger that companies will change consumers’ view by engaging in unethical activities. As a result, celebrities are trying to specify reverse moral clause in their contracts.
 

Keywords


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