An exclusivity agreement is a commercial contract that grants one party sole rights to buy, sell or distribute a product within a defined scope or territory, and must clearly set out obligations, duration and consequences of breach to be enforceable.
In trade practice
In food and agricultural supply, buyers may seek exclusivity over a Ukrainian producer’s output of a specific product or grade to secure supply and protect market position. Suppliers typically negotiate minimum purchase volume commitments in return, to ensure revenue security if the buyer underperforms. Legal review should confirm the agreement does not breach EU or Ukrainian competition rules, particularly where market share is significant. Termination clauses, including notice periods and compensation for unsold stock, are critical points of negotiation.
In a specification
An exclusivity agreement specifies the product, grade, territory and period of exclusivity, minimum offtake volumes, and the consequences of failure to meet those volumes, often with reference to the governing law and dispute resolution mechanism.