Colorado Manufacturer - Reseller Agreement
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How to fill out Manufacturer - Reseller Agreement?
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FAQ
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.
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.
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. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
A reseller agreement is a contractual arrangement between a supplier (vendor/wholesaler) and another party, which agrees to sell products on their behalf. The legally binding agreement outlines the respective responsibilities of each party, including product pricing, quantity limits, and sales strategies.
A reseller agreement typically refers to an arrangement between someone supplying goods (often known as the 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.
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.
Distributors consist of order takers, and generally lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products.
Key Takeaways There are several key differences between an agency agreement and a reseller agreement. Under an agency agreement, the agent enters into the contract with the customer on behalf of the principal. Whereas, under a reseller agreement, the contract is between the reseller and the customer.