Reseller Agreement (Drafting)

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Reseller Agreement (Drafting)

A reseller agreement refers to an arrangement between supplier of goods (known as “wholesaler”) and another party selling the goods to a third party or the general public (the “reseller”). Under a reseller agreement, the reseller agrees to sell the products on behalf of the wholesaler. A few essential characteristics of a reseller is that they generally do not purchase the stock of the wholesaler;find buyers interested in purchasing your products; andwill take a cut from any sales they make. Usually reseller agreements will be drafted in a way so that the business relationships will not be exclusive which enables the wholesaler to enter into multiple arrangements with different resellers.

If case of any disputes on the true nature of the relationship, courts will look at how the relationship appears in practice without actual regards to the parties call it. A court may disregard the terms of a particular agreement that attempts to define the relationship if it believes the relationship to be different from what is written in the agreement. If you cannot fulfil your contractual obligations you can beheld legally liable for compensating the third party. Under an agency agreement, if an agent enters into a contract with a third party, the principal, whether they like it or not, will be bound by the actions of the agent. This is unless the agent has stepped outside the defined scope of their authority.

Features of Reseller Agreement:

Agency Agreements

Under an agency agreement, if an agent enters into a contract with a third party, the principal, whether they like it or not, will be bound by the actions of the agent. This is unless the agent has stepped outside the defined scope of their authority. If you cannot fulfil your contractual obligations you can beheld legally liable for compensating the third party.

Reseller Agreements

A wholesaler, on the other hand, is generally not contractually bound by the actions of the reseller. This is because the contract for purchasing the goods is between the reseller and the customer and not between you and the end customer. Effectively, a reseller agreement means that there is a degree of separation between you and the customer, though other obligation under the agreement exists.

Documents Required

Passport Photo

Passport photo of all parties.

PAN Card

PAN card of all parties.

Aadhar Card

Aadhar card of all parties.

Utility Bill

Utility bill of Electricity or Telephone.

Address Proof

Valid Address Proof of all the parties.

Licence

Valid Driving Licence of all the parties.

Terms and Conditions

Terms and Conditions between the parties.

FAQ

A non-exclusive product resale agreement between a supplier and a reseller, drafted in the supplier's favor. This resource includes key obligations of both parties, the supplier's intellectual property rights, and commonly used warranty and indemnification provisions.

The distributor usually buys directly from the manufacturer, holds inventory of the product, provides after-sale services, and resells the product to resellers and sometimes directly to end users. Resellers generally only sell to end users or wholesalers.

Starting an IT Reseller Business 1. Choose a business. 2. Locate Manufacturers or Providers. 3. Contact Wholesalers or Distributors. 4. Register Your Business. 5. Create a Website. 6. Consider a Storefront. 7. Add Additional Services. 8. Advertise Your Products.

Able to Set Your Own Margins: When you become a reseller, you're free to set your own margins. You can choose to price your products anyway you want. Since the cost of goods is low, you can price your products to ensure your reseller business is profitable. The higher you set your price the more you can make.

Agents promote and sell products with the Company branding rather than their own. A reseller runs the business as their own and earns a monthly revenue from every dollar that their customers pay.

Examples of common value-added resellers (also known as VARs) are computer retailers and service companies, automobile dealerships, and furniture stores.