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ARTICLE · 19 JULY 2021

What is an exclusive supply contract?

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The article explores different types of exclusive arrangements and exclusive dealings for suppliers and purchasers.

AustraliaCorporate/Commercial Law
Rowan O'Neill
Rowan O'Neill
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There can be different types of supply contracts depending on the arrangement between the supplier and purchaser. A supplier is a party who supplies goods to another party, who is the purchaser. Suppliers and purchasers may want the arrangement to be exclusive, and decide to enter an exclusive supply contract. This can include: 

  • the supplier being restricted to supplying the goods in a specific geographical area, or through a particular channel, for example, online only; or
  • restricting a purchaser from buying the same or similar goods from other suppliers.

Suppliers and purchasers need to be aware of the Competition and Consumer Act 2010 (the Act). This legislation outlines that certain exclusive dealings can be in breach of the law. This article will explore the different types of exclusive arrangements and exclusive dealings under the Act.

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