What is an Exclusive Agreement?
An exclusive agreement is an agreement between two or more parties that in purchasing goods or service, it will be exclusively only on the specified seller or supplier that is mentioned in the agreement. The main point of an exclusive agreement is a mutual understanding that the buyer will never buy or distribute the product distributed by the supplier to anyone until the time duration written on the agreement. This usually happens when a buyer and a dealer agreed in an exclusive partnership. The exclusive agreement usually involves a distributor, reseller, broker, salesperson, sales representative, employee sales commission, or a sales agency.
How to Write an Exclusive Agreement?
You are going to write a very important document, so everything you must write on the agreement should be written with formality and confidentiality. The whole content of the agreement needs to be legal since this all about a dealership or a partnership between a buyer and a distributor. Stop stressing yourself on how and what to write your exclusive agreement because we are here to gladly help you in your dilemma. Just carefully follow all the steps below so that you will come up with a well-written exclusive agreement.
1. The Legality
On this part, you need to make sure first that the parties involved in the agreement are already on its legal age, which means they are already eighteen years old and above. If by so happens that they are still young but are already pursuing making business with you, make sure they have a legal guardian or representative with them to do the deal on their behalf.
2. The Information
The agreement is formal document will be useless if it does not have the basic information about the parties involved. Write both of your names, company names, contact information, address, and the date the agreement will be signed. Also, do not forget to write the starting and ending date of the contract.
3. The Agreement Terms
Write all the terms and conditions both you and your partner have agreed to. This is where you will do the listing of the products that will be distributed and how will it be promoted. Make sure that you have used a formal tone in writing because this is a legal document. Also, use language that can be understood by both of you.
4. The Confidentiality Clause
All agreements should have a confidentiality clause. This part will ensure that all information, data, and outputs that are written on the agreement should only be kept only by both parties. If someone will spread the data in the agreement, a lawsuit will happen. This will serve as the protection of your basic agreement.
5. The Lawyer
Since this is a legal document, consulting a lawyer is a must. Have a lawyer review the agreement and let them do some changes to make your agreement more legal and powerful. The lawyer will be the backup if a breach will happen on the agreement.
6. The Exclusive Agreement
After following all the steps above, the exclusive agreement is now ready for signing. Make a copy for each of the parties and let them sign the agreement if they are done reviewing and have already agreed with the terms written on the contract. But before that, make sure you have proofread all the contents written on the agreement.