Quantity Requirement

• Generally, to create a binding contract for consumer goods, the buyer and supplier must agree on the quantity of the goods that will be sold. In an exclusive sales agreement, the buyer and supplier may not agree on a specific quantity of goods, but will agree that the buyer has exclusive rights to sell all the goods given to it by the supplier.
  
  

Good Faith Requirement

• The law assumes that these parties will act in good faith. In other words, the supplier will supply the buyer with a reasonable quantity of goods, and the buyer will use its best efforts to sell those goods.
  
  

Exclusive Sales Agreement Example

• For example, Designer grants exclusive rights to ShirtMart to sell all the shirts he makes in exchange for 50% of their purchase price. Designer and ShirtMart have created an exclusive sales agreement. Designer can only sell his shirts to ShirtMart, and ShirtMart must use its best efforts to sell all the shirts.