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Reseller Agreement Template for Indonesia

This document establishes a legally binding reseller relationship under Indonesian law, governed by the Indonesian Civil Code and relevant commercial regulations. It defines the terms and conditions under which a supplier authorizes a reseller to sell and distribute products within a specified territory in Indonesia. The agreement covers crucial aspects including appointment terms, pricing structures, territorial rights, intellectual property usage, minimum purchase requirements, and compliance with local trade regulations. It incorporates specific provisions required by Indonesian law while addressing practical business needs in the Indonesian market context.

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What is a Reseller Agreement?

The Reseller Agreement is a critical commercial contract used when a business wishes to expand its distribution network in Indonesia through authorized resellers. This document is essential for companies seeking to establish formal distribution channels while maintaining control over their product distribution and brand reputation in the Indonesian market. The agreement must comply with Indonesian commercial law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and Law No. 7 of 2014 on Trade. It typically includes detailed provisions on territorial rights, pricing structures, performance targets, and brand usage rights, while ensuring compliance with local competition laws and consumer protection regulations. This agreement type is particularly important given Indonesia's complex distribution landscape and the need for clear, legally enforceable terms in business relationships.

What sections should be included in a Reseller Agreement?

1. Parties: Identifies and provides full legal details of the supplier and reseller

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the reseller's appointment, territory, and whether the appointment is exclusive or non-exclusive

5. Ordering and Delivery: Details the process for ordering products, delivery terms, and acceptance procedures

6. Prices and Payment: Specifies pricing structure, payment terms, and invoicing procedures

7. Obligations of the Supplier: Lists the supplier's commitments including product supply, support, and training

8. Obligations of the Reseller: Details reseller's duties including minimum purchase requirements, marketing efforts, and customer service

9. Intellectual Property Rights: Covers trademark usage, licensing terms, and IP protection obligations

10. Confidentiality: Defines confidential information and protection requirements

11. Term and Termination: Specifies agreement duration, renewal terms, and termination conditions

12. Post-Termination: Outlines obligations and rights after agreement termination

13. General Provisions: Includes standard legal clauses such as force majeure, notices, and governing law

What sections are optional to include in a Reseller Agreement?

1. Marketing and Promotion: Detailed marketing requirements and cooperative advertising programs - include when specific marketing obligations exist

2. Training Requirements: Specific training obligations and procedures - include when product complexity requires formal training

3. Performance Targets: Specific sales targets and performance metrics - include when performance-based continuation is required

4. Technical Support: Technical support obligations and procedures - include for technical products

5. Import/Export Requirements: International trade compliance requirements - include for cross-border sales

6. Data Protection: Specific data protection and privacy requirements - include when personal data processing is involved

7. Insurance Requirements: Specific insurance coverage requirements - include for high-value or high-risk products

8. Warranty and Returns: Detailed warranty terms and returns procedures - include when complex warranty arrangements exist

What schedules should be included in a Reseller Agreement?

1. Schedule 1 - Products: List of authorized products with specifications and prices

2. Schedule 2 - Territory: Detailed description of authorized sales territory

3. Schedule 3 - Minimum Purchase Requirements: Specific quantity or value requirements by period

4. Schedule 4 - Commission Structure: Detailed pricing and commission calculations

5. Schedule 5 - Service Level Requirements: Specific performance and service level standards

6. Schedule 6 - Trademark Usage Guidelines: Detailed guidelines for using supplier's trademarks

7. Appendix A - Order Form Template: Standard form for placing orders

8. Appendix B - Technical Support Procedures: Detailed support protocols and procedures

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

GenieAI

Cost

Free to use

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