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A typical exclusivity provision might provide something like the following: At all times while providing services under this agreement and for a period of 12 months thereafter, Agency shall not perform services for businesses that compete with Client.
An exclusivity clause limits licenses, distribution rights, and other rights to specific parties. It grants to that party only the rights outlined in the contract and further limits how that party may use the rights they were given. These clauses often appear in contracts, including: Intellectual property agreements.
Consultancy agreements usually contain clauses covering the following: Duration of contract. ... Services to be provided. ... Duties of the consultant. ... Fees and payment terms. ... Supply of equipment. ... Substitution. ... Tax and NICs. ... Liability.
What does the Limitation of Liability clause do? This clause allows the parties to completely absolve the Consultant in the event that any losses, damages or any other liabilities arise out of the services provided.
Another common example of an exclusivity agreement is in commercial leases in shopping centers. Commercial landlords often offer a tenant the exclusive right to sell certain types of goods.
An exclusivity clause is part of a general collaboration agreement inserted by whoever drafted the document for specific reasons. The clause grants the owner of the agreement exclusive rights to the patronage, goods, or services owned by the other party.
Here are six best practices to write a consulting contract that defines your project scope and protects both you and your business. Define Duties, Deliverables, and Roles. ... Prepare for Potential Risk. ... Specify Project Milestones and Engagement Time. ... Identify Expenses and Outline Payment Terms. ... Specify Product Ownership.
The exclusivity clause prevents both parties in a referral agreement from entering into a similar arrangement with a competitor. Although the term may restrict future opportunities, if both parties benefit from exclusivity, it is reasonable to use it.