Exclusive Use Agreement: Everything You Need to Know
An exclusive use agreement is a contract clause typically used in commercial leases in which the tenant can only use the leased space for a specific purpose.3 min read
An exclusive use agreement is a contract clause typically used in commercial leases. It states that the tenant can only use the leased space for a specific purpose. These agreements are commonly used in shopping malls to only allow a tenant to use a space for one activity, such as a restaurant, an electronics store, or a clothing store, while also restricting other tenants to use their spaces with the same purpose.
Effects and Proper Implementation
The first effect of an exclusive use agreement is that it obviously affects the number of other potential tenants in the shopping mall. If such an agreement is signed, the landlord must be very careful not to break the agreement by allowing a similar business to lease a space. It's crucial that landlords managing large shopping malls have a list of all signed exclusive use agreements in order to avoid any potential conflict of interest in the future.