Exclusivity clause in agency and distribution contracts in Italy.

Exclusivity agreement in Italy.

The exclusivity clause is the obligation of the manufacturer or supplier to not grant to other distributors or agents the right to sell its products in a certain area and, at the same time, the obligation of the distributor or agent not to sell in its area products from other manufacturers or suppliers.

The exclusivity clause may be unilateral or bilateral. In fact, the obligation to respect the exclusivity may be charged to a single part of the contract or both.

In the agency contract, the exclusivity clause is regulated by Article 1743 of the Civil Code, according to which the principal can not grant the right to sell its products to other agents in the same area and the same kind of business. The same prohibition is established for the agent, that can't sell or commercialize the products of other principal in the same area and the same kind of business. However, this principle may be waived by the parties in the contract.

Both in agency and distribution contract, the law doesn't require that the area indicated by the exclusive clause coincides with a certain geographical area. In fact, it can also be determined on the basis of different criteria, for example according to the categories of customers.

For more information about agency and distribution contracts in Italy, please contact Lawyers in Italy.

Please, see also:

Agency contract in Italy

The obligations of the Agent under the Italian Law

Agency contract in Italy: the rights of the Agent

Distribution contract in Italy

Contract Law in Italy

Law of contract in Italy: the written form

Termination clause and essential term in Italy

Termination of the contract for non-performance and the notice to comply

Non-compete clause in the distribution contract in Italy

Special court for foreign companies in Italy