Posted in Marketing and Strategy Terms, Total Reads: 500
Definition: Exclusive Agreement
Exclusive agreement implies an agreement or a contract between two or more entities to purchase goods exclusively from the specified seller in the agreement or the contract. This restrictive agreement also binds that the principal and the agent under an association such that neither of them can make any similar deals with its competitors for the agreed period.
The main ingredient of an exclusive agreement is the mutual understanding that the buyer will not obtain the goods provided by seller from anybody else or vice versa for the specified time period in the agreement. Hence it mandates that seller is the exclusive supplier of such goods or services to the buyer. This type of agreement generally occurs in a vertical buyer or a seller relationship where a buyer agrees to buy exclusively from a particular seller.