Exclusivity Agreement
An agreement that gives the buyer exclusive rights to negotiate with the seller for a specified period, preventing the seller from entertaining other offers.
Implications
A contractual arrangement in which one party agrees to buy from or sell to another party exclusively, often used to protect market share, secure supply, or ensure commitment, common in supplier, distribution, and licensing agreements.
Example
Example: A beverage company signs an exclusivity agreement with a major retailer, ensuring that its products are the only beverages from its category sold in that retailer's stores.
Related Terms
Different from non-compete agreements, which restrict parties from engaging in certain activities, exclusivity agreements specifically bind parties to a single source or partner for certain products or services.
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