Reseller Agreement Legal Issues

In an exclusive distribution agreement, for example, the reseller has the exclusive right to sell the product or service in a certain territory or even worldwide. This is a fundamental point of law that may have an impact on the legal framework applicable to the parties. Unlike other reseller agreements, the agency agreement requires the principal and agent to maintain exclusivity in their relationship, meaning that the principal appoints only one agent for the product that the company wants to sell through the agent. While the agent aims to receive a percentage of the total revenue volume, the company and agent must determine the degree of obligations for which the agent is responsible. Sometimes the agent`s job is limited to introducing the customer to the customer, in other cases, the agent is responsible for providing pre-sales and after-sales services. Perhaps one of the disadvantages of the agency agreement is that the agent can legally bind the client with other parties (clients) while the client is completely clueless, so the agent must obey the client`s instructions and must not deal separately with the client who is not authorized by the client. A company that has a growth plan and is actively expanding the geographic reach of its product should develop a constructive plan to seek legal advice to create a reseller agreement. This is an essential step in defining the nature of the legal relationship between the seller or supplier of the product and the reseller of the item to the final consumer. The supplier must analyze whether the reseller should act on behalf of the supplier or have only limited liability. Sometimes the nature of the relationship is defined according to the characteristics of the product. For example, a real estate salesperson who is trying to make a one-time sale is looking for a dealer who acts on their behalf and makes decisions in the best interest of the former. Thus, in this case, the reseller contract is drafted, which defines the relationship between the owner and the reseller and the nature of the obligations that both parties undertake to respect.

As a manufacturing company, the company would focus on production, operations and logistics. Therefore, in order to increase sales and reach a wider target market, the company needs to appoint a reseller who can market the product and increase brand awareness in a territory. It`s easy to infer how crucial a reseller`s agreement is to avoid the inevitable business risks. However, a thorough analysis is necessary before creating a reseller agreement. A company needs to weigh the pros and cons before choosing the appropriate relationship with the reseller that could be critical to the success of the business. Once the relationship is defined, whether the reseller acts as agent or distributor, the company decides how the agreement should be designed so that the company can protect itself from future disputes. Reseller`s exclusive and non-exclusive agreements relate to the type of exclusivity granted to Reseller. You can ask resellers to order a certain volume or value of stock each month. This requirement ensures that the reseller contract is worthwhile and that your products are made public. You can enforce purchase requisitions by imposing a penalty if the reseller does not order the specified volume. While there are different titles for these deals, they are essentially all resale contracts. What are the different types of reseller agreements? This Reseller Agreement constitutes the entire agreement between you and Atlassian with respect to the resale of Atlassian Products as described in this Reseller Agreement and supersedes all prior or contemporaneous oral or written communications, proposals, and statements regarding the Products or other matters covered by this Reseller Agreement.

If any provision of this Reseller Agreement is held to be void, invalid, unenforceable or illegal, the remaining provisions shall remain in full force and effect. This Reseller Agreement may not be modified or amended except as described in Section 11 (Amendments to the Agreement) or otherwise with the written consent of Atlassian (which may be withheld in its sole discretion for any reason). As used herein, „including“ (and its variations) means „including, but not limited to“ (and its variations). If either party to this Reseller Agreement violates any provision of this Reseller Agreement relating to Confidential Information or Intellectual Property Rights, no adequate remedy shall be available at law alone; Accordingly, the aggrieved party to this Reseller Agreement may seek injunctive relief, performance, or any other form of equitable relief or damages, or a combination thereof. No breach or delay by the aggrieved party to this Reseller Agreement in exercising any right, power or privilege under this Agreement shall be deemed a waiver thereof, and no single or partial exercise of this Agreement shall preclude any further exercise or exercise thereof, or the exercise of any right, power or privilege at law or in equity. The parties are independent contractors. Nothing in this Reseller Agreement shall be construed as constituting either party as a partner of the other party or creating any other form of legal relationship that confers on the party an express or implied right, power or authority to create an obligation or obligation of the other party. Business partners have a great deal of flexibility in drafting and signing the reseller contractual framework that best suits them. In this article, you`ll learn how to get the most out of your software distribution agreement.

Whether you want to sign a complex or simple reseller agreement, you need to pay close attention to this detail. In today`s fierce competition, a key difference between an average company and a high-performing company is the company`s ability to generate impressive revenue figures in its quarterly and annual reports. However, it is easier said than done to achieve an ever-increasing marginal return.