The Reseller Agreement is a crucial commercial contract used when a business wants to authorize another entity to resell its products in specified territories within India. This document is essential for businesses expanding their distribution networks while maintaining control over how their products are sold and represented in the market. The agreement must comply with Indian legal requirements, including the Indian Contract Act, 1872, Competition Act, 2002, and relevant GST regulations. It typically covers areas such as appointment terms, territory rights, pricing structures, minimum purchase requirements, marketing obligations, and quality control measures. The document is particularly important in India's diverse market where businesses often rely on local resellers to reach different geographical regions and market segments effectively.
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1. Parties: Identification and details of the supplier and reseller entities
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Scope of reseller appointment and defined territory for operations
5. Rights and Obligations of Supplier: Supplier's commitments including product supply, support, and training
6. Rights and Obligations of Reseller: Reseller's commitments including sales efforts, reporting, and compliance
7. Ordering and Delivery: Process for placing orders, delivery terms, and logistics arrangements
8. Prices and Payment: Pricing structure, payment terms, and invoicing procedures
9. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration of agreement and circumstances for termination
12. Post-Termination Obligations: Obligations and procedures following agreement termination
13. Indemnification: Mutual indemnification obligations and liability provisions
14. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Minimum Purchase Requirements: Include when supplier requires minimum order quantities or values
2. Marketing and Promotion: Include when specific marketing obligations or cooperative advertising are required
3. Training Requirements: Include when product complexity requires formal training programs
4. Performance Targets: Include when specific sales targets or KPIs are required
5. Product Warranty: Include when specific warranty terms need to be passed to end customers
6. Technical Support: Include when products require ongoing technical support arrangements
7. Insurance Requirements: Include when specific insurance coverage is mandatory
8. Exclusivity Provisions: Include when territory or product exclusivity is granted
9. Sub-reseller Rights: Include when reseller is permitted to appoint sub-resellers
10. Data Protection: Include when personal data processing is involved in the relationship
1. Schedule 1 - Products: List of authorized products for resale with specifications
2. Schedule 2 - Territory: Detailed description of authorized sales territory
3. Schedule 3 - Pricing Structure: Detailed pricing, discounts, and commission structures
4. Schedule 4 - Service Level Agreement: Performance metrics and service standards
5. Schedule 5 - Technical Requirements: Technical specifications and compliance requirements
6. Schedule 6 - Marketing Guidelines: Brand usage guidelines and marketing requirements
7. Schedule 7 - Reporting Templates: Standard formats for required business reports
8. Appendix A - Contact Details: Key contact information for both parties
9. Appendix B - Compliance Checklist: Regulatory and operational compliance requirements
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