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An exclusivity clause is a promise in a contract to engage exclusively with one party for specific activities. For instance, one might define an exclusive supplier relationship for a period (e.g., a two-year contract for water supply). However, these clauses can be implied, as in a commitment to purchase all water from one supplier, which constitutes exclusive promise even without using the term "exclusive." Although not very common, exclusivity clauses appear in significant business agreements and can have substantial financial implications. Examples include exclusive distribution or licensing arrangements in specific regions for set durations. Adhering to these clauses is crucial to avoid violations.
