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Pitfalls to Avoid With Third Party Reseller Agreements

Posted on in Online Contracts

b2ap3_thumbnail_shutterstock_319177193.jpgMany businesses rely on relationships with outside agencies or individuals to ensure ongoing productivity and profitability. Creating and implementing third party reseller agreements ensure distribution of your products or services are done in manner that upholds your company’s brand image and reputation. However, while researching and drafting these agreements, it is important to consider variables that might create confusion or poor results.

Consider These Relevant Issues

  • Start small and grow gradually: When opening a new agreement allow a distributor to prove themselves on a small scale. Once doing so you can reward that distributor with a larger piece of territory. Do not assign too much, too soon.
  • Reasons for Termination: If an agreement allows only for Termination for Cause, it can delay action while partners argue the definition of “cause.” Termination for Convenience and for Cause enables a company to take steps to nullify a relationship while following defined and prescribed steps.
  • Writing semi-automatic renewal and annual termination terms into an agreement allows either party to exit an agreement once a year. This bases a partnership on performance, and the most experienced partners desire an ongoing relationship that is based on performance.
  • Exclusive vs Non Exclusive agreements: There are pros and cons to both, but find a way to maintain an advantage while allowing for some flexibility that appeals to the distributor.
  • Address issues of price changes: An agreement that permits price changes based on market demand, and only a period of advance notice can help resolve conflicts over this issue.
  • Termination of the agreement by one or both parties: The best distributor agreements allow for either partner to end the relationship.
  • Allow the nature of the relationship to change: Variables in the marketplace can impact how both a manufacturer and a distributor do business. Write an agreement that permits both parties to recommend change on an ongoing basis allows the partnership to evolve with the market without undue pressure.
  • Stay involved in the process: Attorneys are important to writing fair and legal agreements, but the input of those with practical experience can help keep matters relevant and on point.

Retain an Experienced Florida Online Contracts Attorney to Install Sound Reseller Agreements

Building and maintaining solid relationships with distributors and other third-party resellers are an important component for many businesses. A knowledgeable Florida cyber law attorney will help you protect your business and those relationships by creating fair and durable third party reseller agreements. Contact Nelson Cyber Law, PLLC by 1-800-440-5536 and schedule an initial consultation to learn how they can put their cyber law knowledge and experience to work for you and your business.




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