Exclusive Distribution Agreement Breach Interpretation

A dispute arose concerning an agreement where one party committed to exclusively sell a specific product within a defined territory, and the other party agreed to purchase and resell that product. The seller subsequently terminated the exclusive agreement, claiming a breach by the buyer due to the buyer allegedly selling competing products. The court rejected the seller's appeal, affirming that while an exclusive commitment implies the buyer's obligation not to sell competing goods, such a clause is not presumed and requires an explicit contractual provision; absent an express term prohibiting the sale of competing products, the buyer's general commercial freedom was not restricted, and therefore, the termination based on the alleged breach was unjustified.