An Exclusive Distributorship Agreement is a legal contract that gives one company exclusive rights to distribute a product or service in a particular region. This agreement makes the one party a de facto monopoly of the product or service within the specified geographical area, and can significantly increase their dominant market share. It also ensures that the other party does not grant similar rights to any other distributors, thereby giving them a competitive advantage. Exclusive Distributorship Agreements help businesses grow and expand their presence in different regions, while at the same time providing protection against unfair competition.