[pboychuk]

Does anyone know about exclusivity of sales for a certain venue, for example a company has some type of contract in which only one buyer is allowed to sell their product at a certain flee market? Is this normally done through contract, are there penalities for breaching such contracts? Anyway to get around it?

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I know a little about it. What exactly are you asking?

[gogetter333]

Look at A Bathing Ape clothing line

VERY EXCLUSIVE

[IwannaDB9]

would depend entirely on the contract and how it was written?

although do you not want to keep it exclusive, possibility of making it a premium or if you could build up a rep?

[rogercbryan]

Home Depot does this with a ton of people...

[Ahern & Brucker]

This topic is of interest to me as well...

I think the most important thing when entering into such a contract is to have a through understanding and meeting of the minds with the guy you are dealing with...

Their are a couple of ways to view an exclusivity contract and you both should be up front as to how each of you view this... What is the reason for an exclusivity contract?

From the manufacturers point of view, he may be offering an EC to a marketing company as some form of reward or incentive for doing a good job with his product. The marketing guy may have another take and thing if he is putting in some serious amt of work, expense and effort, this is not so much a reward but more a guarantee that the manufacturer isn't going to drop out at the last minute or go with the next best offer...

and of course, lots of variables between these two..

The main point is both parties are up front and do what they say they will do when they say they will do it... and their honest intentions and capabilities...

if you are the marketing guy and you are representing the product well and making sales and increasing your effort regurarly, their is no need for the manufacturer to complain... and on the same note, you want the manufacturer to deliver as promised.

I don't know about penalties... tar and feather?

I'd think the time both people invested in the relationship and the profit lost for eithers breech would be penalty enough. You should both try to look out for each others best interest... marketing is a vital organ of manufacturing so you really are talking about a partnership.

"exclusivity" is a pretty sweet tool in the box and it's value can't or shouldn't be overlooked by the marketer... it's an asset or perk or can be very valuable in the hands of the right guy... or, it can be woth the paper it's written on... "what you do with it" is where you will find your greatest profits.. in the right hands, it can be worth a fortune.

[jmkenton]

As another poster mentioned it all comes down to the contract. If its written well then you could gain exclusivity to a whole region or country not to mention a flea market.

Unless they were somhow inhibiting free trade as in a monopoly then a well written contract would be pretty strong. FYI monopoly protections are there for the benefit of the consumer NOT the vendor. So therefore if a flea market we to let only one vendor from each category in it would not infringe free trade as you would be free to setup business outside the market. e.g they may let only one burger vendor in but you could still go outside and visit your nearest MCDonalds.

Its tough to say without seeing what the specifics are.

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Remember though that a solid contract really doesn't prevent a party from breaching. If it becomes inefficient to continue to operate according to the contract, a party SHOULD breach it. That is why punitive damages aren't awarded for breach of contract claims. Just because you have a contract doesn't mean that everything's going to turn out just as the contract reads.

[Ahern & Brucker]

Originally Posted by jmenq2

Remember though that a solid contract really doesn't prevent a party from breaching. If it becomes inefficient to continue to operate according to the contract, a party SHOULD breach it. That is why punitive damages aren't awarded for breach of contract claims. Just because you have a contract doesn't mean that everything's going to turn out just as the contract reads.

WOuldn't that be nice if a well written contract was a sure sign of success

sounds like a john lennon song...

So, let me ask you... what are the main benefits to a well written contract over say a "good faith handshake"...

Each party will want to include some "out" some reason why it might be possible they cannot preform... a escape hatch. Is it just more a written intpretation of what the two parties agree on, right? (for when it get's complictaed)

or is it more of a fraud protection device or hold accountable someone who intentionally drfrauds...

Seems to me, a legal contract wouldn't really protect me as a manufacturer offering a exclusive agreement? or would it? how am I protected from the guy not just forcing me into an exclusive contract and than he sits on it for x/time...?

maybe if i hadn't entered into an exclusive contract, it might be possible to have some top performer who could have made me millions while my guy is out screwing around at the produce truck.?

WHo's going t opay me the millions in potential loss?

and both parties have equal concerns... my marketin gguy is making 50k a month and all the sudden i can't produce because i have a massive heart attack or something... what is going to protect his profits?

can a contract protect me and what from?