The exclusivity of an agreement is an important part of negotiating any business deal and plays a large role in licensing agreements and distributorship agreements. Making a distributorship agreement exclusive means that only the distributor with the exclusive right may sell the products. Similarly, an exclusive license means that only the licensee can use the license. This exclusivity provides a major business advantage, ensuring that the exclusive distributor or licensee will not face any competition from other companies distributing the same product or using the same license.
An undertaking not to compete is a clause often used in commercial contracts in industries where competition is fierce. The clause aims to prevent a partner company or employee from engaging in business with a competitor during the term of the contract. In some cases, the undertaking not to compete, also sometimes called a non-compete clause, may prevent competition even after the contract ends for a set period of time.
There are three general types of registration for property in Japan. The first is the system of registration for immovable property or real estate. Registering ownership of real estate will clarify not only the ownership rights but also what types of rights are included in that ownership.
Sometimes an agreement involves cargo or products that, if lost, would create more liability than either party is willing to accept. In these situations, where the risk of loss is disproportionally larger than the contract price, the parties may agree to include an insurance clause to ensure that, if the cargo is lost or destroyed, neither party will have to pay for the damage.