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An exclusivity clause is a contractual commitment to engage exclusively with one party for specific transactions. For example, a company might designate a supplier as the exclusive source of water for a defined period. Such clauses can be subtle; they may not use the word "exclusive" but still create exclusive obligations, such as a promise to purchase all water from one supplier. Although not frequently included in agreements, exclusivity clauses can arise in significant business transactions, potentially holding substantial monetary value. Violating these clauses can have serious consequences, emphasizing the need for careful compliance.
