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An exclusivity clause is a contractual obligation that restricts one party to engage exclusively with another in specific transactions, like being the sole supplier of a product for a set duration. These clauses can vary in wording; for example, a commitment to purchase all products from a supplier also creates exclusivity, even if "exclusive" is not explicitly stated. While not widespread, exclusivity clauses are significant in crucial business agreements and can have considerable financial implications, such as exclusive distribution rights in a region. Adhering to these clauses is essential to avoid violations.
