Advertise Contract is an agreement made between the Advertising Agency and the Advertiser who intends to inform prospective customers about the product or services to be brought into the market. With the emergence of more avenues like locational site, television channels, websites, telecommunications, etc; the Advertisement Contract has assumed immense importance in the trade and commerce sector.
Advertisement Contract is mainly governed by the Indian Contract Act 1872 and incorporates in it the rights and obligations of the parties.
An Advertising Agency takes/reserves a site of a building or premises from its owner on licence basis for legal fee as per the terms agreed for the purposes of placing hoardings thereon or own a webpage for the display of the advertisement or reserves a time span with the radio or television operators and thus then enters into an advertisement agreement with the advertiser.

Types of Advertising contracts:

  • Agreements between owner of site and advertising Agency.
  • Agreement of license between the owner of a building and the Advertising agent.
  • Agreement between owner and the advertiser.
  • Agreements between advertiser and advertising agency.
  • Agreement between advertiser agent and cinema theatre.
  • Agreement between proprietor of newspaper and advertising Agency.
  • Agreement between advertising agent and individual lending his name.


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