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Competition

(Querist) 08 September 2011 This query is : Resolved 
Dear all'

A manufacturing agreement is going to be executed between two parties A of West Bengal and B of Orissa . B will manufacture on behalf of A under the brand name of A. Can A stipulate in the contract agreement a clause that "so long the agreement is in force A shall not get the product manufactured from any other party other than B in the state of Orissa"? Is it barred under The Competition Act? Kindly help me.
Regards,
Heaven,Kolkata.
R.Ramachandran (Expert) 08 September 2011
Such a provision in the contract would not in any way attract the provisions of the Competition Act.
What is to be considered is whether "A" would be agreeable for such a term in the agreement.
Devajyoti Barman (Expert) 08 September 2011
Yes, the clause does not violate the provisions of the Competition Act.

This sort of the clause is treated is valid and termed as Exclusive clause.
Nagaraja B S (Expert) 08 September 2011

Dear User,

Basically you are outsourcing the manufacturing of goods. Yes, i can help you with specialized manufacturing agreement, i can help with a specialized NNN agreement which can help you to take care of your concern.

Thanks
Nagaraj
Corporate, Commercial & IP Lawyer
IP Lex Global Services
Email: nagaraja_bs@iplexglobal.in
Mob: 0091-09902007635 / 34
Raj Kumar Makkad (Expert) 08 September 2011
nagaraja! this site is not for commercial purpose or for advertisement purpose so dont lure litigants for your professional purpose.
Raj Kumar Makkad (Expert) 08 September 2011
The contract duly entered between A & B do not violate Competition Act.
prabhakar singh (Expert) 09 September 2011
I agree with experts.


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