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A reselling agreement is a contract that allows a business retailer, distributor, or independent reseller, to purchase products or services from a manufacturer or supplier and sell them to end customers. It’s commonly used across industries like retail, technology, and manufacturing to define pricing, responsibilities, and the scope of the reseller’s rights.
When two businesses work together to sell products or services, it’s important to have the working terms in writing, especially when one company is authorized to sell another company’s offerings. That’s where a reseller agreement comes in, and it’s crucial for a transactional relationship such as this one.
A “reseller” in this context is a business or individual that purchases goods or services from an original provider or manufacturer. The reseller then sells the products to their own end customers, often under the Reseller’s own branding.
As you can imagine, there are multiple facets of this type of business that need to be outlined in a clear contract to avoid financial and legal liabilities.
A Reseller Agreement can apply to a variety of different businesses. You might want this contract if you’re a:
These are the essential elements that shouldn’t be missed when drafting up your contract:
This Reseller Agreement (“Agreement”) is made and entered into on Start Date: by and between Principal (Product/Service Provider), Legal Name or Business Name: , Address: , Phone: , Email: , and Reseller, Legal Name or Business Name: , Address: , Phone: , Email: .
The Principal, a company providing the following goods and/or services: , appoints the Reseller as an authorized reseller of the Principal’s goods and services, subject to the terms below.
1. Purpose and Intention
The purpose of this Agreement is to authorize the Reseller to market and sell Principal’s goods and/or services under the terms of this Agreement, fostering a mutually beneficial relationship while protecting Principal’s business and intellectual property.
2. Appointment of the Reseller
Principal hereby appoints Reseller as an authorized reseller of Principal’s products and services, subject to the limitations and terms of this Agreement.
3. Term of the Agreement
4. Goods or Services Authorized for Resale
Authorized products and/or services, including models, versions, SKUs, or other specifics.
5. Limitations on the Right to Resell
6. Pricing and Sales Tax
Resale Pricing: Set by Reseller, though Principal may issue recommended retail prices.
7. Purchase Orders
8. Delivery and Acceptance of Goods or Services
9. Invoicing and Payment
Invoice issued by Principal upon acceptance of each purchase order.
10. Performance Standards and Customer Support
Reseller shall maintain performance standards, including sales quotas or KPIs if specified here:
11. Marketing and Additional Responsibilities
12. Confidentiality and Non-Disclosure
Each party shall keep confidential all proprietary or sensitive information received from the other, including product designs, pricing strategies, marketing plans, client lists, and technical documentation. Confidentiality obligations survive for years after termination. Legally compelled disclosures require prompt notice to the disclosing party where permitted by law.
13. Intellectual Property and Usage Rights
All intellectual property in Principal’s products, documentation, trademarks, and logos remains the exclusive property of Principal. Reseller may use these assets solely to market and resell authorized products and services during the term and must cease all use upon termination.
14. Amendments
This Agreement may be amended only by a written document signed by both parties.
15. Termination
16. Insurance and Compliance
Reseller shall maintain commercially reasonable insurance for its operations and provide proof of coverage upon request. Each party agrees to comply with all applicable laws and regulations governing the sale and distribution of the products or services.
17. Force Majeure
Neither party shall be liable for failure or delay in performing obligations due to events beyond reasonable control, including acts of God, natural disasters, war, terrorism, labor disputes, governmental actions, or utility outages. Performance shall resume as soon as practicable.
18. Limitation of Liability and Indemnification
19. Dispute Resolution and Governing Law
This Agreement constitutes the entire understanding between the parties and supersedes all prior discussions or agreements regarding the subject matter. It may be executed in counterparts and by electronic signature, each counterpart deemed an original and together one instrument.
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