What is an Exclusivity Clause?
An exclusivity clause is a part of a contract that gives one party sole rights to something. In a partnership agreement, a vendor might grant a partner exclusivity to sell their product in a specific geographic region or a particular industry. In return, the partner might agree not to sell any competing products. This can be a powerful incentive for a partner, as it protects them from competition. However, it's a big commitment for the vendor, so these clauses are usually reserved for high-performing, strategic partners.