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As the name suggests, an exclusivity agreement will provide you with an exclusive right to something within a specified period of time for a financial consideration. This is most common in high worth transactions where a buyer does not wish to incur transactional and legal fees without an assurance that no other offers will be accepted.
An exclusivity agreement can include:
- Sellers obligations to provide the pre-contractual documentation as soon as possible
- Purchasers obligations to purchase subject to certain provisions
- Rights of termination
- Remedies
- Agreed purchase price
An exclusivity agreement will provide security to buyers and sellers alike by ‘locking out’ any potential outbidders and will ensure a swift transaction for the sellers.
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