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An exclusivity clause is a contractual promise to engage exclusively with a specific party for a defined activity, such as being the sole supplier of a product. This clause can be explicit, stating exclusivity directly, or implied by committing to purchase exclusively from one party. While not extremely common, exclusivity clauses can be significant in important business agreements, potentially involving substantial financial stakes. For instance, a company may designate an exclusive distributor in a specific region or an exclusive licensee for a product. Violating these clauses can have serious implications.
