The Authorized Reseller Agreement serves as a fundamental legal framework for companies looking to expand their distribution network through authorized resellers in India. This document is essential when a manufacturer or principal company wishes to appoint resellers to market and sell their products while maintaining control over distribution channels and brand reputation. The agreement encompasses crucial elements such as appointment terms, territorial rights, pricing mechanisms, performance metrics, and compliance requirements, all structured within Indian legal framework. It's particularly important for businesses seeking to establish a formal distribution network while ensuring compliance with Indian commercial laws, including the Indian Contract Act, Competition Act, and consumer protection regulations. The document typically includes detailed provisions for product handling, warranty obligations, intellectual property usage, and termination procedures, making it suitable for both domestic and international companies operating in the Indian market.
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1. Parties: Identification and details of the Principal/Manufacturer and the Reseller
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Territory: Terms of reseller appointment, territory definition, and exclusivity status
5. Rights and Obligations of Reseller: Detailed responsibilities, performance requirements, and conduct standards for the reseller
6. Rights and Obligations of Principal: Principal's commitments regarding product supply, support, and training
7. Ordering and Delivery: Procedures for placing orders, delivery terms, and logistics arrangements
8. Pricing and Payment Terms: Product pricing structure, payment terms, and invoice procedures
9. Intellectual Property Rights: Usage rights for trademarks, logos, and other IP, and protection obligations
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration of agreement, renewal terms, and termination conditions
12. Post-Termination Obligations: Obligations and procedures following agreement termination
13. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes
14. General Provisions: Standard boilerplate clauses including notices, amendment procedures, and severability
1. Marketing and Promotion: Specific requirements for marketing activities and brand promotion, included when the principal wants to control marketing efforts
2. Minimum Purchase Requirements: Specific sales targets or minimum order quantities, included when performance metrics are crucial
3. Training Requirements: Detailed training obligations and certification requirements, included for technical or complex products
4. Insurance Requirements: Specific insurance coverage requirements, included for high-value or high-risk products
5. Data Protection: Specific data handling and privacy requirements, included when personal data processing is involved
6. Anti-Corruption Compliance: Detailed anti-corruption and compliance requirements, included for international agreements or when required by corporate policy
7. Service Level Requirements: Specific service quality standards and metrics, included for products requiring after-sales service
8. Sub-Reseller Rights: Terms for appointing sub-resellers, included when sub-reseller arrangements are permitted
1. Product List: Detailed list of authorized products with specifications and pricing
2. Territory Map: Detailed description or map of authorized sales territory
3. Commission Structure: Detailed breakdown of commission rates and calculation methods
4. Service Level Agreement: Detailed service performance metrics and standards
5. Trademark Usage Guidelines: Specific guidelines for using principal's trademarks and branding
6. Technical Requirements: Technical specifications and compliance requirements
7. Reporting Templates: Standard formats for required periodic reports
8. Training Program: Details of required training programs and certification processes
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