Exclusivity clause is a contractual clause that prevents parties from entering competing agreements or activities with third parties within a defined scope, market, or timeframe. It fosters trust, ensures a preferential relationship, and maximizes value. Common in distribution, partnership, and joint venture agreements, it provides strategic and competitive advantages.
Drafting Tip
Detail any exclusive rights or territories granted, ensuring they are clear and specifically defined. Consider the implications of limiting these rights.
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