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Pitfalls of Exclusivity in Commercial Deals

Pitfalls of Exclusivity in Commercial Deals

March 2, 2023 at 9:00 AM - commercial contracts,

Occasionally in commercial transactions, you may be asked to give “exclusivity” to the other party, in either direction (e.g., vendor contracts may include language requiring customers to use their services exclusively, or a customer may ask a vendor not to offer similar services to any of the customer’s competitors). Even when such requests seem low risk at first glance because they do not present a problem for your business at the moment, facts and circumstances can change rapidly, which is why it is often best to avoid them.

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