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Exclusivity Agreement
I need an exclusivity agreement that ensures a supplier will not provide similar products to any competitors within Austria for a period of 2 years. The agreement should include clauses for breach of contract, confidentiality, and a termination option with a 3-month notice period.
What is an Exclusivity Agreement?
A Exclusivity Agreement creates a binding commitment where one party promises to deal only with another party for specific business activities. In Austria, these contracts commonly appear in distribution deals, real estate transactions, and merger negotiations - giving the benefiting party protected access to opportunities or resources.
Under Austrian commercial law (Unternehmensgesetzbuch), these agreements must have clear time limits and scope restrictions to remain enforceable. They're especially valuable during due diligence phases when companies need confidential access to sensitive information, or when sellers want to focus on serious buyers without wasting time on competing offers.
When should you use an Exclusivity Agreement?
Use an Exclusivity Agreement when entering high-stakes business negotiations in Austria, particularly during mergers, acquisitions, or major distribution deals. These agreements protect your interests by preventing the other party from entertaining competing offers while you invest time and resources into due diligence or contract development.
The timing is crucial - implement this agreement early in discussions, ideally before sharing sensitive financial data or trade secrets. Austrian businesses often use these agreements during property developments, exclusive licensing arrangements, and when exploring strategic partnerships where information protection and dedicated negotiation periods are essential for success.
What are the different types of Exclusivity Agreement?
- Exclusive Distribution Contract: Grants sole rights to distribute products in specific territories, often used by manufacturers entering new markets
- Exclusive Sales Agreement: Focuses on direct sales relationships, giving exclusive rights to sell specific products to end customers
- Sole Distributor Agreement: Creates a single-channel distribution partnership with broader operational autonomy
- Exclusive Supplier Agreement: Establishes exclusive purchasing commitments for raw materials or components
- Exclusive Agency Agreement: Appoints an exclusive representative to act on behalf of the principal in specific markets
Who should typically use an Exclusivity Agreement?
- Business Owners and CEOs: Initiate and authorize Exclusivity Agreements during strategic business deals, especially in M&A situations
- Corporate Legal Departments: Draft and review agreements to ensure compliance with Austrian competition laws
- Distribution Companies: Enter these agreements to secure exclusive rights for product distribution in specific territories
- Manufacturers: Use them to protect supply chain relationships and maintain market control
- Commercial Lawyers: Advise on terms, negotiate conditions, and ensure enforceability under Austrian law
- Real Estate Developers: Secure exclusive development or purchase rights for properties during negotiation periods
How do you write an Exclusivity Agreement?
- Party Details: Gather complete legal names, registration numbers, and authorized representatives of all involved parties
- Scope Definition: Define exact products, services, or business activities covered by the exclusivity
- Territory Mapping: Specify precise geographical boundaries where the agreement applies within Austria
- Duration Terms: Determine start date and length of exclusivity period, including any extension options
- Performance Metrics: Set clear, measurable targets or minimum requirements to maintain exclusivity
- Exit Conditions: Outline specific circumstances for early termination or modification
- Documentation: Our platform generates customized agreements that ensure all these elements align with Austrian law
What should be included in an Exclusivity Agreement?
- Party Identification: Full legal names, registration numbers, and authorized signatories of all parties
- Scope Definition: Precise description of exclusive rights, activities, or products covered
- Territory Clause: Clear geographical boundaries within Austria where exclusivity applies
- Duration Terms: Specific start date, end date, and any renewal provisions
- Consideration: Clear statement of payment terms or other valuable exchange
- Termination Rights: Conditions for early termination and notice requirements
- Competition Laws: Compliance statements with Austrian antitrust regulations
- Dispute Reֱ: Austrian jurisdiction and applicable law clauses
- Confidentiality: Protection of sensitive information exchanged during the agreement
What's the difference between an Exclusivity Agreement and a Confidentiality Agreement?
While both serve to protect business relationships, an Exclusivity Agreement differs significantly from a Confidentiality Agreement in several key aspects under Austrian law. The main distinction lies in their primary purpose and scope of restrictions.
- Core Purpose: Exclusivity Agreements prevent parties from engaging with competitors during a specific period, while Confidentiality Agreements focus on protecting sensitive information from disclosure
- Duration Impact: Exclusivity terms typically have shorter, strictly defined periods to comply with competition laws, whereas confidentiality obligations often extend indefinitely
- Legal Scope: Exclusivity arrangements face stricter scrutiny under Austrian competition laws, requiring careful territorial and temporal limitations
- Business Application: Exclusivity deals primarily appear in distribution, sales, or M&A contexts, while confidentiality agreements are used across all business relationships where sensitive information is shared
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