An exclusivity agreement is a formal document of contract which is made between two or more than two parties to establish the fact that the parties will only conduct business with each other on an exclusive basis and would not deal with any other party for the same reasons or requirements. These agreements are legally binding in nature and if any of the two parties violates the exclusivity condition, then it can be charged under law.
An exclusivity agreement is basically a promise of commitment and is of a higher level than other business contracts or agreements. These agreements must contain the details of the parties as well as the details of the business venture or deal which is being made exclusive. These agreements also contain the various recitals or clauses which define the behaviour of the parties during the term of the contract. These terms are obligatory for both the parties to abide by.
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