An Exclusive Territory Agreement is a legally binding contract between two parties, in which one party gives another exclusive rights to sell their product or services in a certain geographic area. It includes terms such as the duration of the agreement, restrictions on advertising and promotional activities, and prohibitions against selling outside of the specified territory. The benefits of this type of an agreement are numerous; the exclusive retailer gains exclusive access to the customers in the specified area while the manufacturer is ensured that their products are only sold by authorized and responsible sellers. This makes it easier to manage pricing, maintain market share, and protect rate structure.