When you`ve decided to work with a reseller to sell your products or services, it`s important to have a clear agreement in place. An agreement with a reseller lays out the terms and conditions of the relationship between you and the reseller, and ensures that both parties understand their rights and responsibilities.
Here are a few key elements to consider when drafting an agreement with a reseller:
1. Terms of the relationship
The agreement should clearly state the nature of the relationship between you and the reseller. Will the reseller be an independent contractor, or will they be considered an agent of your company? What is the duration of the relationship, and under what circumstances can it be terminated?
2. Sale of products or services
The agreement should specify which products or services the reseller is authorized to sell, and how much they can charge for them. The agreement should also outline any restrictions on the reseller`s marketing and advertising activities.
The agreement should specify how the reseller will be compensated for their sales, including any commissions or bonuses they will receive. It should also outline the payment terms, such as when payments are due and how they will be made.
4. Intellectual property
The agreement should address any intellectual property rights related to the products or services being sold, including trademarks, copyrights, and patents. It should specify how these rights will be protected and what rights the reseller has to use them.
The agreement should include a confidentiality clause that prohibits the reseller from sharing any confidential information about your company or products with third parties.
6. Liability and indemnification
The agreement should outline the responsibilities of each party in the event of a legal or financial dispute. It should also specify who is liable for any damages or losses incurred as a result of the reseller`s actions.
By drafting a detailed agreement with a reseller, you can ensure that both you and the reseller are on the same page and that your business relationship is built on a strong foundation. This can help prevent disputes and ensure that your products or services are effectively marketed and sold.