In the current economic situation, small to medium-sized companies and entrepreneurs are forced to constantly search for creative and unique ways to stay relevant. A common tactic that most companies employ is initiating and closing exclusivity agreements.
Without getting very technical, an exclusivity agreement is a legal arrangement between two or more parties through which the signers all agree to purchase goods and services only from a predetermined list of providers, for a set amount of time.
The exclusivity agreement is closed in the understanding, and commitment, that the parties involved will not seek, under any circumstances, the assistance and services of an entity not explicitly mentioned in the contract.
Now, we understand that this legal jargon might feel a tad overwhelming for some people, but exclusivity contracts are not so hard to comprehend once you understand the mechanics behind them.
In this article, we will explain how these agreements work and help you figure out whether or not your business might need one. For those curious how an exclusivity agreement looks, there are plenty of templates available for download from Templateassistant.com.