Reseller agreements are a crucial part of any business relationship that involves the reselling of products or services. These agreements establish the terms and conditions of the partnership, including pricing, payment, intellectual property, and termination.
To help you understand how these agreements work, we will provide an example of a reseller agreement in this article.
This agreement is between ABC Corporation (“Company”), a manufacturer of goods and services, and DEF Inc. (“Reseller”) a company engaged in the business of reselling such goods and services.
The purpose of this agreement is to establish the terms and conditions under which Reseller may purchase and resell the products of the Company.
Terms and Conditions
1. Reseller`s Obligations: Reseller agrees to use its best efforts to market and distribute the products of the Company. Reseller will maintain an adequate inventory of the products and ensure their proper storage and handling.
2. Pricing: The Company will provide Reseller with a price list for the products. Reseller will be responsible for setting its own prices, but prices must be at least the same as the prices listed by the Company.
3. Payment Terms: Reseller agrees to pay the Company for all products purchased within 30 days of receipt of an invoice. The Company reserves the right to charge interest on past due accounts at the rate of 1.5% per month.
4. Intellectual Property: The Company retains all ownership rights to its intellectual property, including trademarks, copyrights, and patents. Reseller agrees not to use these rights without the prior written consent of the Company.
5. Termination: Either party may terminate this agreement upon 30 days` notice in writing. In the event of termination, Reseller will return all unsold inventory to the Company.
6. Non-Exclusive Agreement: This agreement is non-exclusive, and the Company reserves the right to sell its products to other resellers or directly to customers.
In conclusion, a reseller agreement is a vital tool for any business relationship that involves the reselling of products or services. This agreement sets out the terms and conditions of the partnership, including pricing, payment, intellectual property, and termination. By following the terms and conditions, both parties can benefit from a successful and profitable partnership.