MORALS CLAUSES IN ENDORSEMENT CONTRACTS
By Nidhi Baid
In today’s age, people have busy lives and short memories. Thus, it is very necessary for a product or a service to remain visible in the market to remain relevant. Due to this reason, the companies all have a dedicated marketing team to ensure that the product remains in the memories of the people. One of the most popular marketing methods is that of contracting the services of a celebrity endorser to endorse their products so as to create an association in the minds of the people between the product and company with that celebrity.
However, the problem arises for the company when the celebrity endorser is engaged in any sort of scandal which can lead to a bad reputation for the product and company due to their association with that celebrity endorser. Thus, the companies often include a Morals’ Clause in their agreements with the celebrity endorser giving them a way to terminate their association in case of any moral turpitude on part of the celebrity.
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