Exclusive Agency Law and Legal Definition

An exclusive agency excludes all other brokers, except the owner from selling the products or property. This is also known as exclusive agency to sell. Exclusive agency is a right to represent the principal within a particular market which is free from competition. There are three types of contracts involving exclusive agency: (1) where the contract does not prohibit the principal from making direct sales but deprives him/her to appoint other agents; (2) where the agent is the only one with any right to sell; and (3) where the exclusive agency is accompanied with a stipulated right to commissions on all sales whether made through the agent or not.