Document background
Exclusive Territorial Agreements are essential commercial contracts used when a business wants to grant another party exclusive rights to operate, sell, or distribute within a specific geographic area in Canada. These agreements are particularly important in distribution, franchise, and licensing arrangements where territorial exclusivity is a key business strategy. The document must carefully balance the grantor's interest in maintaining control over their products or services with the rights holder's need for protected territorial rights, while ensuring compliance with Canadian competition laws. The agreement typically includes detailed provisions on territory definition, performance requirements, support services, and termination conditions. Special consideration must be given to Canada's dual legal system, with Quebec operating under civil law while other provinces follow common law principles. The agreement must also account for federal competition regulations that govern exclusive dealing arrangements.
