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Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Below is a basic distribution agreement checklist to help you get started: Names and addresses of both parties. Sale terms and conditions. Contract effective dates. Marketing and intellectual property rights. Defects and returns provisions. Severance terms. Returned goods credits and costs. Exclusivity from competing products.
A distribution agreement is a legal contract between your company and distributors, defining the guidelines to market and sell your products. A distribution agreement grants a distributor the rights to market and sell your company products.
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products.
Specifying the product and its delivery dates. Specifying whether payment is commission-based or whether there is another type of fee arrangement. Describing the relationship between the parties, such as the distributor being an independent contractor and not an employee of the supplier.
What should a Reseller Agreement template cover? Responsibilities of each party. ... Delivery requirements. ... Payment terms. ... Intellectual property rights. ... Consequences of a breach of contract. ... Dispute resolution processes. ... Data protection and processing conditions. ... Terms for future contracts.
While similar to distribution agreements, reseller agreements differ in the way the product reaches the consumer. Unlike distributors, resellers don't purchase and store your product, ready to sell. Instead, they act as a middleman, taking a commission when they sell your product to a customer.
Types of distribution agreement Exclusive Distribution Agreements. Sole Distribution Agreements. Non-Exclusive Distribution Agreements. What is a distribution agreement?