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A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
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.
Value-added resellers include technology service companies, auto dealerships and even furniture companies. Technology service companies often offer a range of value-added products or services, such as extended warranties, service contracts, supplemental hardware, software, and installation and setup services.
SaaS reseller agreements will typically outline: Ownership terms, such as whether the agreement is exclusive. Intellectual property rights, such as whether you can use the vendor's logo. Applicable law, indicating which jurisdiction's laws govern the agreement.
The legally binding agreement outlines the respective responsibilities of each party, including product pricing, quantity limits, and sales strategies. It also sets limits on how much control each party has over marketing activities related to the product and sales process.
Reseller Agreements should specify the details of the product or service delivery. Both parties should have a mutual understanding of the delivery terms, including the timelines, delivery responsibilities, delivery location, and method.
Contents Defining the scope of the reseller agreement. Outlining the duration of the agreement. Outlining the rights and obligations of the reseller and the customer. Outlining the scope of the reseller's services. Outlining any exclusions. Setting out payment terms. Stating the payment terms.