For example, a court will not necessarily accept that someone is an agent simply because the other party uses that person from their agent. A court may ignore the terms of a particular agreement that attempts to define the relationship if it believes that the relationship is different from what is written in the agreement. What is the initial duration of the agreement? Do it long enough to give the distributor time to market with your products, but no more. It can be extended each year if it works. One of these main differences is how the parties interact. In an agency relationship, the agent can enter into contracts on behalf of the client. However, a reseller cannot do this for a wholesaler. In addition, the agent generally has greater obligations to the client than the dealer to the wholesaler. One of the main features of agency agreement distribution agreements is that a distributor is an independent organization that, in its own name, buys and resells accordingly from the seller as a client. Here, the seller has no direct relationship with the customer through the distribution contract, although the seller conceded the software to the customer directly through an end-user license agreement. Are you going to name the distributor on an exclusive or non-exclusive basis – is he the only person authorized to sell your products in this area? Even if you agree to an exclusive agreement, you should reserve some existing customers for direct use, in which case you refer to it in the agreement. Make sure you protect your copyrights, patents and trademarks. Your distributor should only be able to use it as long as the agreement remains in effect and it is useful to have a clause requiring it to notify you and act to protect your interests, for example when counterfeit goods appear on the market.
(iv) Does the dealer or licensee have direct obligations to support the end customer? Typically, an agency agreement is exclusive, which means that the client has only one agent. As explained above, this is different from a distributor agreement in which a wholesaler may have multiple resellers. Creating a successful reseller agreement requires planning and strategy. Companies should complement each other to create revenue options, while presenting compelling reasons for their joint activities.