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Exclusive Dealing Contract Template for England and Wales

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Key Requirements PROMPT example:

Exclusive Dealing Contract

"I need an Exclusive Dealing Contract for appointing a sole distributor in Northern England for our automotive parts, with a minimum purchase commitment of £500,000 annually, starting from March 2025."

Document background
The Exclusive Dealing Contract is a crucial commercial agreement used when businesses wish to establish exclusive trading relationships in England and Wales. It is particularly relevant when suppliers want to ensure dedicated distribution channels or when distributors seek protected territories. The contract must carefully balance commercial interests with competition law requirements, including the UK Competition Act 1998 and retained EU law principles. It typically includes detailed provisions on exclusivity scope, performance obligations, territory definitions, and compliance requirements.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the exclusive dealing arrangement

3. Definitions: Key terms used throughout the agreement

4. Grant of Exclusive Rights: Scope and nature of exclusivity granted

5. Territory: Geographic scope of the exclusive arrangement

6. Duration: Term of the agreement including commencement date

7. Obligations of Parties: Core responsibilities of each party

8. Payment Terms: Financial arrangements and payment conditions

9. Termination: Circumstances and process for ending the agreement

Optional Sections

1. Minimum Purchase Requirements: Specific quantities or values that must be purchased - used when the agreement includes minimum order commitments

2. Performance Metrics: Specific KPIs and performance standards - used when measuring performance is crucial to the arrangement

3. Marketing Obligations: Promotional and marketing requirements - used when specific marketing efforts are required

4. Non-Compete Provisions: Restrictions on competing activities - used when additional competitive restrictions are needed

5. Change of Control: Provisions dealing with ownership changes - used when stability of ownership is important

Suggested Schedules

1. Products/Services Schedule: Detailed list of products or services covered by the agreement

2. Pricing Schedule: Detailed pricing structure and terms

3. Territory Map/Description: Detailed definition of the exclusive territory

4. Performance Metrics Schedule: Detailed KPIs and measurement criteria

5. Service Level Agreement: Detailed service standards and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Industries

UK Competition Act 1998: Primary UK legislation governing competition law, which prohibits anti-competitive agreements and abuse of dominant market position. Essential for ensuring exclusive dealing arrangements don't violate competition rules.

Enterprise Act 2002: Supplements the Competition Act and provides for market investigations and merger control. Relevant for understanding market impact of exclusive dealing arrangements.

Retained EU Article 101 TFEU principles: Post-Brexit retained EU law principles regarding anti-competitive agreements, which continue to influence UK competition law interpretation.

Vertical Agreements Block Exemption Regulation (VABER): Provides safe harbor for certain vertical agreements, including exclusive dealing arrangements that meet specific criteria and market share thresholds.

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts, ensuring fairness in contractual relationships.

Consumer Rights Act 2015: Protects consumer interests in contracts. Relevant if the exclusive dealing arrangement involves consumer-facing businesses.

Sale of Goods Act 1979: Governs contracts for the sale of goods, including implied terms about quality and fitness for purpose in commercial relationships.

Supply of Goods and Services Act 1982: Regulates contracts for the supply of goods and services, including implied terms about quality of service in commercial relationships.

Common Law Contract Principles: Fundamental principles governing contract formation, including offer, acceptance, consideration, intention to create legal relations, and certainty of terms.

Competition Law Compliance Requirements: Specific requirements including market share assessment, duration limits, territorial restrictions, and ensuring the agreement doesn't unfairly restrict trade.

Contract Formation Elements: Essential elements that must be clearly defined including exclusive rights, territorial scope, duration, termination provisions, and performance obligations.

Commercial Reasonableness Standards: Requirements for reasonable duration of exclusivity, fair termination provisions, and clear performance metrics.

Remedies and Enforcement Framework: Structure for breach provisions, damages calculations, and dispute resolution mechanisms in exclusive dealing contracts.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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