Why exclusivity is important to your customers or business partnersSo now that you`ve accepted (I hope) that exclusivity can be a huge opportunity if properly designed, let me immerse myself in the subject. If you are a start-up that wants to enter into small contracts with teams of several levels in the same organization, the concept of exclusivity will rarely appear because your buyer is trying to solve his immediate problem with your software or solution and probably doesn`t care intensely about the competition. However, the higher you are in a sales organization (and the larger the deal), the larger the executives who often want to “win the market,” which means that sales are growing faster, offering products or services at a lower cost, or offering functions that their competitors cannot. With respect to commercial and residential transactions, particularly where first-class real estate is scarce, exclusivity agreements, also known as lockout contracts, can be an attractive option when used pending a purchase and sale contract. An exclusivity clause provides that parties who have signed are legally limited to the sale or purchase of goods to a single party or by a single party. The buyer is prevented from buying, buying or using similar products from other suppliers or suppliers. This clause can be applied in a number of situations, including franchises, distributors and business opportunities. When an employer attempts to act against an employee under an exclusivity agreement with a zero-hour contract, that employer could be held responsible for the worker`s compensation. 3. Industry Bound — Sometimes you can`t win the competition argument, and the buyer really wants a broader exclusivity agreement. If you can`t have designated competitors, then I recommend you define a really narrow industry grouping that offers you sufficient comfort in combination with time-based exclusivity.
They could therefore accept exclusivity for the oil refinery industry and not for the entire oil and gas sector. The more you can get into your definition, the better. It is also customary for exclusivity agreements to contain terms such as confidentiality and termination. When establishing business relationships, a party can obtain and access highly confidential information and sensitive data that is useful to competitors and, therefore, a well-developed agreement should take into account the immediate and future needs of all parties and maximize commercial synergies. Call our real estate experts for a free, non-binding offer to get an exclusive agreement on 0207 703 5034 or fill out the contact form.