Authorized Reseller Agreement for Malaysia

Authorized Reseller Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a principal (manufacturer or brand owner) and an authorized reseller. The document outlines the terms and conditions under which the reseller may purchase, market, and sell the principal's products within a defined territory. It addresses key aspects including appointment terms, territorial rights, pricing structures, intellectual property usage, performance obligations, and compliance with Malaysian regulations including the Contracts Act 1950 and Consumer Protection Act 1999.

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What is a Authorized Reseller Agreement?

The Authorized Reseller Agreement is essential for businesses looking to expand their distribution network in Malaysia through authorized resellers. This document is typically used when a manufacturer or brand owner wants to establish a formal relationship with a reseller while maintaining control over how their products are sold and their brand is represented. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Competition Act 2010, and relevant consumer protection laws. It contains detailed provisions covering appointment terms, territory definitions, pricing structures, minimum purchase requirements, marketing obligations, intellectual property rights, and quality control measures. This agreement is particularly important in the Malaysian market where proper documentation of distribution relationships is crucial for legal protection and business operations.

What sections should be included in a Authorized Reseller Agreement?

1. Parties: Identification of the Principal (brand owner) and the Reseller, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, brief description of the Principal's business, products, and intention to appoint the Reseller

3. Definitions: Definitions of key terms used throughout the agreement, including 'Products', 'Territory', 'Intellectual Property Rights', 'Confidential Information'

4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, definition of territory, and scope of authorized activities

5. Term and Renewal: Duration of the agreement, commencement date, and conditions for renewal

6. Reseller Obligations: Core responsibilities of the Reseller, including sales targets, marketing requirements, customer service standards, and reporting obligations

7. Principal Obligations: Core responsibilities of the Principal, including product supply, training, technical support, and marketing support

8. Ordering and Delivery: Procedures for ordering products, delivery terms, minimum order quantities, and lead times

9. Prices and Payment: Pricing structure, payment terms, currency, and invoicing procedures

10. Intellectual Property Rights: Rules for using Principal's trademarks, logos, and other IP, including brand guidelines and restrictions

11. Confidentiality: Protection of confidential information exchanged between parties

12. Compliance: Obligations to comply with applicable laws, including consumer protection, data protection, and trade regulations

13. Termination: Grounds for termination, notice periods, and consequences of termination

14. Post-Termination: Obligations and rights after termination, including handling of remaining inventory and customer data

15. General Provisions: Standard legal provisions including notices, assignment, force majeure, entire agreement, and governing law

What sections are optional to include in a Authorized Reseller Agreement?

1. Marketing and Promotion: Detailed marketing requirements and cooperative advertising programs, included when specific marketing obligations are required

2. Training Requirements: Specific training obligations and certification requirements, included when products require technical expertise

3. Performance Targets: Detailed sales targets and performance metrics, included when specific performance requirements are essential

4. Sub-Resellers: Rights and restrictions regarding appointment of sub-resellers, included when sub-reseller arrangements are permitted

5. Insurance: Specific insurance requirements, included when product liability or other risks require specific coverage

6. Data Protection: Detailed data protection obligations, included when significant customer data processing is involved

7. Import/Export: Specific provisions for international trade, included when cross-border sales are permitted

8. Warranty Service: Detailed warranty service procedures, included when reseller will handle warranty claims

9. Competition Restrictions: Non-compete and territorial restrictions, included when exclusive arrangements are granted

What schedules should be included in a Authorized Reseller Agreement?

1. Product List: Comprehensive list of authorized products covered by the agreement, including SKUs and descriptions

2. Price List: Detailed pricing structure, including reseller discounts and minimum advertised prices

3. Territory Definition: Detailed description or map of authorized sales territory

4. Service Level Requirements: Specific performance metrics, response times, and service standards

5. Brand Guidelines: Detailed guidelines for use of Principal's trademarks and marketing materials

6. Warranty Terms: Detailed warranty terms and procedures for warranty claims

7. Commission Structure: If applicable, detailed commission calculations and payment terms

8. Reporting Templates: Standard formats for required periodic reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Technology and Electronics

Consumer Goods

Automotive

Healthcare and Medical Devices

Industrial Equipment

Software and Digital Products

Fashion and Luxury Goods

Telecommunications

Food and Beverage

Construction Materials

Pharmaceutical Products

Relevant Teams

Legal

Sales

Commercial

Business Development

Operations

Compliance

Partner Relations

Distribution

Channel Management

Contract Administration

Relevant Roles

Commercial Director

Sales Director

Channel Manager

Business Development Manager

Legal Counsel

Contracts Manager

Distribution Manager

Partner Relations Manager

Compliance Officer

Operations Director

Chief Commercial Officer

Sales Operations Manager

Regional Sales Manager

Channel Sales Executive

Legal Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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