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An exclusivity clause is a contractual commitment to engage exclusively with one party for specific activities. For instance, a company might designate a supplier as the exclusive provider of water for a defined period, such as two years. Alternatively, a clause may require a business to source all its water from a supplier without explicitly stating exclusivity, thereby still creating an exclusive obligation. While not common, exclusivity clauses often arise in significant business agreements and can hold considerable financial value. It is crucial to adhere to these clauses to avoid violations, which can lead to serious consequences.
