The Master Reseller Agreement is a fundamental commercial contract used when a business wants to establish a formal distribution channel through authorized resellers in South Africa. This document is essential when a supplier wishes to expand their market reach without direct sales, setting out comprehensive terms for the reseller relationship. It typically includes detailed provisions for territory rights, pricing structures, performance targets, and compliance requirements under South African law. The agreement addresses critical aspects such as intellectual property protection, confidentiality, data protection under POPIA, and consumer protection requirements. A Master Reseller Agreement is particularly important when establishing long-term distribution relationships and can serve as a template for multiple reseller arrangements within the same business model.
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1. Parties: Identification and details of the supplier (principal) and reseller, including registration numbers and addresses
2. Background: Context of the agreement, brief description of the business relationship and purpose
3. Definitions: Detailed definitions of terms used throughout the agreement
4. Appointment and Territory: Terms of reseller appointment and defined geographic territory for operations
5. Rights and Obligations: Detailed rights and responsibilities of both parties
6. Products and Pricing: Description of products/services covered and pricing structure
7. Order Process: Procedures for placing and fulfilling orders
8. Payment Terms: Payment conditions, currency, and timing
9. Intellectual Property: Protection and usage rights of trademarks, patents, and other IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: POPIA compliance and data handling requirements
12. Term and Termination: Duration of agreement and termination conditions
13. Post-Termination: Obligations and rights after agreement termination
14. Warranties and Indemnities: Guarantees, warranties, and indemnification provisions
15. General/Boilerplate: Standard legal provisions including notices, governing law, etc.
1. Marketing and Promotion: Requirements for marketing activities and brand promotion. Include when reseller is expected to actively market products
2. Training Requirements: Staff training obligations and support. Include for technical or complex products
3. Performance Targets: Minimum sales targets and performance metrics. Include when specific performance levels are required
4. Sub-Resellers: Rights and conditions for appointing sub-resellers. Include if sub-reselling is permitted
5. Insurance: Required insurance coverage. Include for high-value or high-risk products
6. Import/Export: International trade compliance. Include for cross-border reselling
7. Service Level Agreement: Support and service standards. Include for technical products or services
8. Competition Restrictions: Non-compete and exclusivity provisions. Include when territorial or product exclusivity is granted
1. Product Schedule: Detailed list of authorized products/services with specifications
2. Price List: Comprehensive pricing structure, discounts, and margin arrangements
3. Territory Map: Detailed description or map of authorized sales territory
4. Service Level Requirements: Detailed service standards and response times
5. Marketing Guidelines: Brand usage rules and marketing requirements
6. Performance Metrics: Detailed KPIs and measurement criteria
7. Technical Requirements: Technical specifications and compliance requirements
8. Return Policy: Procedures for handling returns and warranties
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