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An exclusivity clause is a contractual commitment to engage exclusively with one party for specific goods or services over a designated time. For example, a clause may state a company is the exclusive supplier of water for two years without explicitly using the term "exclusive." Such clauses, while not common in contracts, are significant in major business deals and can represent substantial financial implications. Examples include exclusive distribution or licensing agreements in specific regions and timeframes. It is crucial to adhere to these clauses to avoid breaches.
