It is impossible to conduct business all alone, and at some stage, we will require partners or third parties to assist with marketing or distribution, consulting, sales etc in order to grow your business successfully. It is absolutely crucial to have a reseller agreement with similar contract such as a distribution agreement in order to ensure that all the parties know what their obligations and benefits are in relation to their contractual relationship. It is very important to avoid "borrowing"a template contract from the web or from a friend or colleague. This contract was drafted with something else in mind and it does not cater for your business, and you might not be aware of the shortfalls in the contract because you are not qualified to tell the difference. When things go wrong you will be at a serious disadvantage, and it is very likely that you will lose a great deal of money then the money you saved by borrowing a non-specific template in the unlikely event that a serious dispute occurs and template contract fails to protect your interests.
Our experienced commercial contract drafting consultants are able to help with the preparation and execution of a wide range of contracts catering for your specific needs and circumstances. After taking your instructions, we advise you, negotiate, and draft the most appropriate contract to ensure that you and your business is protected from financial and legal risks, future disputes and potential litigation. If seeking for Reseller agreement, we can help in drafting a contract signed between an owner and a third party who is the reseller. Normally, third parties do not have the right to sell the owner’s products to others because of the intellectual property rights the owner has, but with the help of reseller agreement, it gives third parties the rights to resell products to others.
The Parties involved in the reseller agreement
Owner or Manufacturer of the product- This is the party who owns the product and allows the reseller to sell it to end users/customers.
Reseller - This is the party that is selling the products of the owner to end-users.
End-User – They are the clients or customers who agree to buy the product from the reseller.
Why do you need a Reseller Agreement?
If you are planning to sell your products with the help of various resellers, you make sure to go with the Reseller Agreement in order to protect your rights. Companies make the use of the resellers when they want to sell their products to other countries, especially when they don’t have sales channels. By finding a third-party seller in a third country, you can avoid all problems so your product reaches to those countries. Moving with the agreement, it will help you in the following ways-
-You are not liable for damages to end-users
-Disputes between the reseller and the end-user is none of your business
-It leads to more sales and profit without giving your Intellectual Property rights to others.
Distribution agreements and reseller agreements also have to compliant with the laws of the country where the product is being distributed to via the third party reseller distributor. This means that the. Your contract must be aware of the law applicable in the third party contract and ensure that your reseller distribution agreement caters for this.