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An exclusivity clause is a contractual agreement in which one party promises to engage exclusively with another party for specific goods or services over a specified time, such as a supplier relationship. These clauses can be explicit, referring directly to "exclusive," or implicit, such as a commitment to buy all supplies from one source. Although not very common, exclusivity clauses can play a significant role in major business agreements, often carrying substantial financial implications. Examples include exclusive distribution rights in particular regions. It’s crucial to adhere to these clauses to avoid violations.
