English Clause

Clause in an exclusive supply contract that allows the buyer to purchase goods from other suppliers if they offer better terms (i.e., a lower price), usually provided that the buyer first discloses the more favorable terms to the exclusive supplier and allow it an opportunity to match them. English clauses present some difficulties, in that they may require disclosure of information that a bidder regards as confidential; in addition some competition authorities regard them with suspicion since they allow competitors to know about one another’s pricing, creating a possibility of competitive coordination.

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