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An exclusivity clause is a contractual agreement to engage exclusively with one party for specific actions, such as being the sole supplier of a product. These clauses can be explicit, stating exclusivity directly, or implicit, as seen in commitments to purchase all supplies from a single source without using the term "exclusive." While not frequently included in contracts, they are significant in major business deals, potentially carrying substantial financial implications. Examples include exclusive distribution rights or licensing agreements in designated markets for specified durations. Adhering to these clauses is crucial to avoid violations.
