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Exclusivity Questions

What is an exclusivity agreement?

Exclusivity agreements are contracts between two or more companies to keep dealings with each other, only in an assigned area of business. Many businesses draw up exclusivity agreements because they are mutually beneficial for all companies involved. Exclusivity agreements are created to enhance business of the companies and/or the relationship a company shares with another company and exclude all others. Most generally one company may team up with a stronger part of its own supply chain or a company that is equally as powerful in a related niche market to create a powerful punch in the market. Continue to read below where Experts have provided individuals with reliable answers regarding exclusivity.

Would an exclusivity agreement be needed to obtain the name of an orchestra?

In most situations, when a person wants to gain all rights to a name or product they would fill out a federal trademark or service mark, not an exclusivity agreement. The owner of a federal trade mark and the one that controls the use of said trademark can be a group of people a single person, a corporation, or any other type of business.

How much does an exclusivity agreement cost?

The cost of an exclusivity agreement depends largely on the size of the contractual obligation, which also increases the attorney’s liability if the agreement is incorrectly worded, and the complex nature of the exclusivity agreement. A basic agreement have been known to cost $1500-$2500 and more complex agreements have been known to cost around $10,000-$60,000, which is a considerably higher rate. When looking for an attorney to draft an exclusivity agreement, the person would need to explain to him what he/she is looking for in the agreement, what type of business that the companies have, and what type of exclusivity that they are looking for and ask for a flat rate quote from the attorneys.

Can a person who has a exclusivity agreement write a letter to cancel the agreement if there is no agreement that the individual cannot buy products from another company?

If there is not clause in the agreement stating that the person has to purchases from the company direct, then the person can go elsewhere to purchases the product that they need. In regards to ending the agreement, the person would need to follow the provisions in the agreement for ending it and if there is no provisions, and then a letter stating that the agreement is ending should work.

When dealing with a manufacturer, how would a person protect themselves and their services and would they need a lawyer and how much would this cost?

The person would need to hire an attorney and have the attorney draw up an exclusivity agreement. The lawyer would draw the agreement up to be customized to the person’s needs and business and it would cover all aspects of the product. Many attorneys charge by the hour and have been known to cost $100-$500 depending on the lawyer’s experience.

When a company or individual has a product or service they are offering, having an exclusivity agreement would protect the person or company from others selling their product or services without their permission. Consulting an Expert is the best way for the person or company to gain insight into how to proceed and what steps to take.

Ask a Business Lawyer

Law Pro
Law Pro, Attorney
Category: General
Satisfied Customers: 1737
Experience:  20 years experience in business law - sole proprietor, partnership, and corporations
11688690
Type Your Business Law Question Here...
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4 Business Lawyers are Online Now

How JustAnswer Works:

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