Document background
A Client Exclusivity Agreement is a crucial commercial contract used when parties wish to establish a protected business relationship where one party commits to working exclusively with the other within defined parameters. This document, governed by South African law, is particularly relevant in scenarios where service providers seek to secure dedicated client relationships or where clients want to ensure priority access to specific services or products. The agreement must carefully balance commercial interests with competition law requirements, specifically the South African Competition Act 89 of 1998, to avoid creating unlawful market restrictions. It typically includes detailed provisions on the scope of exclusivity, duration, territorial limitations, performance obligations, and protection mechanisms for both parties.
