Define Reseller Agreement
Like regular employees, agents usually sign an employment contract that defines their day-to-day responsibilities and remuneration. The employer is required to provide them with the means to promote the product, as well as to comply with applicable law (depending on the jurisdiction in which the employee is located) and to control. Although, in an apparent environment, the agreement for the resale of goods and services is usually agreed between the manufacturer and the wholesaler acting as reseller for the end customer, there may still be cases where a similar agreement is concluded between the wholesaler and another reseller who resells the product to the final customers. From the perspective of the organization that creates the product or service and is willing to enter into an agreement with a reseller, a crucial plan must be created to protect its best interests. Thus, a follow-up agreement becomes the necessity of the hour during which both parties to the discussion can elaborate the clauses of the agreement in order to achieve a win-win result. There are several important differences between an agency contract and a reseller contract. In the case of an agency contract, the agent concludes the contract with the client on behalf of the client. In the context of a reseller contract, the contract is concluded between the reseller and the customer. If you want multiple people to resell your products, you probably need a reseller contract, not an agency contract. The developer does not have the ability to produce the software that the reseller has ordered One of these main differences is the way the parties interact. In an agency relationship, the agent may enter into contracts on behalf of the client. However, a reseller cannot do this for a wholesaler. In addition, the agent generally has greater obligations to the principal than the reseller to the wholesaler.
A reseller agreement usually refers to an agreement between a person who supplies goods (often referred to as a wholesaler) and another party who sells the goods to a third party or the general public (the reseller). Under a reseller contract, the reseller undertakes to sell the products on behalf of the wholesaler. A company that has a growth plan and is actively expanding the geographic reach of its product should develop a constructive plan to contact legal counsel to draft a reseller agreement. This is an essential step in defining the nature of the legal relationship between the product professional and the reseller from the item to the end user. The supplier must analyse whether the reseller must act on behalf of the supplier or whether it has limited liability. Sometimes the nature of the relationship is defined according to the characteristics of the product. For example, a real estate seller who is trying to make a one-time sale will look for a reseller to act on their behalf while making decisions in the best interest of the former. In this case, the reseller contract is therefore drafted, which defines the relationship between the owner and the reseller, as well as the nature of the obligations that both parties agree to respect. In contrast, an independent sales representative is not legally authorized to execute end-user licenses on behalf of the software manufacturer.
Instead, the agent negotiates the terms with potential licensees, but the software publisher enters into a software license agreement directly with the end user. The agent is paid a final price commission, which is usually a percentage of the license fee associated with the software license. When an agent enters into a contract with a third party under an agency contract, the client, whether he likes it or not, is bound by the agent`s actions. Unless the officer has exceeded the defined scope of his or her powers. Software reseller agreements may be exclusive or non-exclusive. The software provider has the right to choose the type of agreement it offers to each individual reseller. There are several well-known types of agency contracts, e.B. between real estate agents and owners who want to sell their properties. Regardless of the duration of the term, the Software Reseller Agreement must address what happens if the term expires or is otherwise terminated.
Post-termination issues that may need to be resolved include the impact on end user license renewal, data ownership, or other intellectual property rights associated with changes made by Reseller, the Software, whether Reseller will owe future commissions, and liability for ongoing service contracts related to the Software. On the other hand, a wholesaler is usually not contractually bound to the reseller`s actions. Indeed, the contract for the purchase of the goods is concluded between the reseller and the customer. It`s not between you and the customer. This is because a reseller contract means that there is some separation between you and the customer. The relationship between the Seller and a representative consists of rights and obligations arising from the law of the Agency, as well as the rights and obligations defined in the contract. One of the disadvantages for a seller appointing agents is that, regardless of the actual power granted by the agreement, the agent has implicit legal power to bind the seller as principal. In other words, the agent has the power to enter into contracts between the seller as principal and other parties, and therefore obligations that the seller must comply with, whether the seller knows them in advance or not. Software reseller contracts can not only help business partnerships thrive, but also help avoid various problems. These problems can come from simple problems, such as.
B: Otherwise, the software developer must define whether the reseller can register domain names, company names, and trademarks on behalf of the provider. If they grant such rights to the reseller, the contract must also clearly define what happens to the intellectual property after the expiration or termination of the contract by a party. At Sell Saas, we recognize the importance of software reseller contracts and pay close attention to them. We manufacture them not only to protect our rights, but also to give our customers the guarantee that they will receive the product they need. For this reason, our customers always know their rights and know what to expect from us. Therefore, the agreement between the software reseller should clearly define the role of the reseller and distinguish it from that of an employee or independent sales representative. If third parties mistakenly believe that reseller is an agent or employee of Publisher, acts and agreements signed by Reseller may be considered binding on Publisher itself. To avoid this, the publisher must ensure that the reseller does not impersonate an employee of the publisher. .