Exclusivity Agreement

The Bigger Picture In Selling Your Business

What is an Exclusivity Agreement?

This is an agreement to ensure that a party to the contract does not enter parallel, similar arrangements with another party. Thus, an exclusivity agreement guards against ‘double-dealing’.

In business sale, an exclusivity agreement is a contract that prevents a business seller from pursuing an offer from another potential buyer for a specified period of time after signing the indicative offer/letter of intent (LOI) with the current potential buyer.

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