What Is The Meaning Of Exclusive Agreement

The difference between the exclusive agreement and the non-exclusive agreement refers to how suppliers and partners work together. Exclusivity agreements exclude competitors for a certain period of time, while non-exclusive agreements allow competitors, often as motivational tools. Seller-induced exclusive transactions can also lead to anti-competitive behaviour. This is true if it leads to it. a foreclosure that keeps competitors away from a large part of the market for a longer period of time. This also applies to a new entrant where the dominant incumbent operator can prevent the entry of an efficient new entrant through the practice of exclusive distribution. The ineffective results for exclusive trade are as follows: exclusive contracts are only legal if they do not restrict competition and trade.