Exclusivity Agreement Template for the UK

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What is an Exclusivity Agreement?

An exclusivity agreement template is a ready-to-use contract that stops one or both parties from negotiating with competitors for a set period, usually 30 to 90 days. It gives a buyer or partner breathing room to complete due diligence and finalise terms without the other side entertaining rival offers, and it sits within the law of England and Wales.

These binding contracts run for a fixed period and set out clear consequences for a breach. Under the Competition Act 1998, English courts will uphold properly drafted exclusivity terms but scrutinise any restriction that unreasonably limits trade or forecloses the wider market. A well-drafted template also requires the seller or supplier to report any approach from other interested parties during the exclusivity period.

You can use the same structure across scenarios: a customer locking in a supplier, a business securing a project-based commercial contract, or a founder protecting a company sale. Exclusivity also appears in employment settings, where an employee agrees not to work for a competitor during their engagement. GenieAI drafts each version against your own playbook rather than handing back a generic form, and flags the risk points (an unenforceable restriction, a missing cost cap) in red, amber and green before you send it.

Sample clauses: standard wording in a UK exclusivity agreement

3. Exclusivity Undertakings
3.1 During the period beginning on the date of this Agreement and ending at [11.59 p.m.] on [date] (the "Exclusivity Period"), the Seller shall not, and shall procure that no member of the Seller's Group and none of its or their directors, employees, agents or advisers shall, directly or indirectly solicit, initiate, encourage, entertain or continue any discussions or negotiations with any person other than the Buyer in relation to a Competing Transaction.
3.2 The Seller shall not, during the Exclusivity Period, provide any information relating to the Target to any person other than the Buyer and its advisers for the purpose of evaluating or facilitating a Competing Transaction, nor enter into any agreement, letter of intent or other arrangement (whether or not legally binding) in respect of a Competing Transaction.
3.3 The Seller shall notify the Buyer in writing within [2 Business Days] of receiving any approach, offer or request for information from any person in relation to a Competing Transaction, stating the date of the approach and its material terms, but need not disclose the identity of that person.
3.4 Nothing in this Agreement obliges either party to negotiate, to continue to negotiate or to conclude the Proposed Transaction, and neither party owes the other any duty to negotiate in good faith.

6. Consequences of Breach
6.1 If the Seller breaches clause 3, the Seller shall pay the Buyer on demand a sum equal to the Buyer's documented external costs and expenses (including legal, accounting and financial advisory fees) properly incurred in connection with the Proposed Transaction, up to a maximum of [£amount].
6.2 The parties agree that the sum payable under clause 6.1 is a genuine pre-estimate of the Buyer's wasted expenditure and is a proportionate protection of the Buyer's legitimate interest in securing an uninterrupted period in which to complete due diligence.
6.3 Payment under clause 6.1 is without prejudice to the Buyer's right to seek injunctive relief or specific performance in respect of any actual or threatened breach of clause 3, damages for which would not be an adequate remedy.

Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.

Frequently Asked Questions

When should you use an Exclusivity Agreement?

Use an Exclusivity Agreement when entering serious negotiations for high-value transactions like business acquisitions, property deals, or major commercial contracts. It's especially vital during the early stages when you're investing significant time and resources into due diligence but haven't yet sealed the deal.

The agreement becomes essential when dealing with valuable assets that attract multiple bidders, or when confidential information needs protection during negotiations. For complex deals in England requiring detailed investigation periods, having exclusivity helps prevent the other party from shopping around while you're spending money on accountants, surveyors, and evaluation of the opportunity. Getting the wording right early reduces the risk of a rival offer derailing the deal after you've committed real costs.

What are the different types of Exclusivity Agreement?

Who should typically use an Exclusivity Agreement?

  • Business Owners and CEOs: Often initiate Exclusivity Agreements during company sales, mergers, or major strategic partnerships
  • Commercial Property Developers: Use them to secure time for due diligence when purchasing valuable real estate
  • Solicitors and Legal Teams: Draft and review the agreements, ensuring enforceability under English law
  • Investment Bankers: Require exclusivity during complex financial transactions or company acquisitions
  • Manufacturers and Distributors: Establish exclusive trading relationships in specific territories or product lines
  • Suppliers and Customers: Lock in a single supply or service relationship in a competitive market, often as a precursor to a longer service agreement
  • Corporate Board Members: Must approve and oversee significant exclusive arrangements affecting company operations

How do you write an Exclusivity Agreement?

  • Party Details: Gather full legal names, registered addresses, and company registration numbers of all involved parties
  • Deal Scope: Define exactly what activities are exclusive, including territory, products, or services covered
  • Time Period: Determine the duration of exclusivity and any extension conditions
  • Permitted Activities: List any specific exceptions or activities still allowed during the exclusivity period
  • Consequences: Specify remedies for breaches, including damages or injunctive relief
  • Reporting Requirements: Outline how parties must disclose any third-party approaches, whether by email or in writing
  • Document Generation: Use GenieAI to create a legally sound agreement that includes all essential elements, then download it ready to sign

What should be included in an Exclusivity Agreement?

  • Parties' Details: Full legal names, addresses, company registration numbers and a contact for each involved entity
  • Scope Definition: Clear description of exclusive rights, territories, products or services covered
  • Duration Clause: Specific start and end dates, including any extension or early termination provisions
  • Consideration: Details of any payment or value exchange to make the agreement legally binding
  • Breach Remedies: Specific consequences and available legal remedies for violations, and any cap that limits the paying party's exposure
  • Confidentiality Terms: Protection of sensitive information shared during the exclusivity period, often mirroring a standalone non-disclosure agreement
  • Reporting Policy: How each party must disclose third-party approaches, and any support obligations during the review
  • Governing Law: Explicit statement that the law of England and Wales governs the agreement
  • Execution Block: Proper signature sections for authorized representatives

What's the difference between an Exclusivity Agreement and a Business Acquisition Agreement?

An Exclusivity Agreement and a Business Acquisition Agreement both play a part in company purchases, but they serve distinct purposes and sit at different stages of the transaction. The table below sets out the key differences.

FeatureExclusivity AgreementBusiness Acquisition Agreement
Timing and DurationPreliminary document, typically 30 to 90 days during initial negotiationsThe final sale contract that completes the deal
Scope of CoverageFocuses solely on preventing negotiations with other partiesCovers the whole transaction, including assets, liabilities and warranties
Legal ObligationsCreates temporary restrictions on seeking alternative dealsEstablishes permanent transfer of ownership and ongoing obligations
Enforcement MechanismsBreaches usually result in defined damages up to an agreed limitBreaches can trigger multiple remedies, including specific performance

You can draft an exclusivity agreement with GenieAI and download it ready to sign, checked against your own playbook so the risk points are clear before it goes out for signature in 2026 and beyond.

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Source: GenieAI internal data Updated 6 hours ago

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England & Wales

Publisher

GenieAI

Cost

Free to use

Last updated

About the Exclusivity Agreement

  • Party Details: Gather full legal names, registered addresses, and company registration numbers of all involved parties
  • Deal Scope: Define exactly what activities are exclusive, including territory, products, or services covered
  • Time Period: Determine the duration of exclusivity and any extension conditions
  • Permitted Activities: List any specific exceptions or activities still allowed during the exclusivity period
  • Consequences: Specify remedies for breaches, including damages or injunctive relief
  • Reporting Requirements: Outline how parties must disclose any third-party approaches, whether by email or in writing
  • Document Generation: Use GenieAI to create a legally sound agreement that includes all essential elements, then download it ready to sign

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