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Authorized Reseller Agreement for Saudi Arabia

Authorized Reseller Agreement Template for Saudi Arabia

This document is a comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates the relationship between a supplier/manufacturer and an authorized reseller. It complies with Saudi Arabia's Commercial Agencies Law and related regulations, defining the terms under which the reseller may sell and distribute the supplier's products within a specified territory. The agreement covers crucial aspects including appointment terms, territorial rights, pricing structures, performance obligations, intellectual property usage, and compliance requirements specific to the Saudi Arabian market.

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What is a Authorized Reseller Agreement?

The Authorized Reseller Agreement is essential for businesses seeking to establish formal distribution channels in Saudi Arabia. This document is particularly crucial as Saudi Arabian law requires specific provisions and protections for commercial agency and distribution relationships. The agreement is typically used when a manufacturer or supplier wants to appoint a reseller to market and sell their products within Saudi Arabia, ensuring compliance with local regulations while protecting both parties' interests. It includes detailed provisions on territorial rights, performance requirements, intellectual property protection, and compliance with Saudi commercial laws. The document is especially important given Saudi Arabia's strict regulations on commercial agencies and the need for clear documentation of distribution relationships.

What sections should be included in a Authorized Reseller Agreement?

1. Parties: Identification of the supplier/manufacturer and the reseller, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the reseller arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Territory: Terms of reseller appointment, whether exclusive or non-exclusive, and defined territorial scope

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Reseller Obligations: Core responsibilities of the reseller including sales targets, marketing requirements, and customer service standards

7. Supplier Obligations: Supplier's commitments regarding product supply, support, and training

8. Ordering and Delivery: Procedures for placing orders, delivery terms, and logistics arrangements

9. Prices and Payment: Pricing structure, payment terms, and invoicing procedures

10. Intellectual Property Rights: Usage rights for trademarks, logos, and other IP, including restrictions

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Indemnities: Product warranties, service guarantees, and indemnification provisions

13. Compliance with Laws: Obligations to comply with Saudi Arabian laws and regulations

14. Dispute Resolution: Mechanisms for resolving disputes under Saudi Arabian law

What sections are optional to include in a Authorized Reseller Agreement?

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

2. Training Requirements: Specific training obligations for reseller staff - include when products require technical expertise

3. Performance Bonds: Requirements for performance guarantees - include when financial security is needed

4. Insurance: Specific insurance requirements - include when high-value products are involved

5. Anti-Corruption: Detailed anti-corruption provisions - include when dealing with government sectors or high-risk markets

6. Data Protection: Specific data handling requirements - include when personal data processing is involved

7. After-Sales Service: Detailed service and support requirements - include for technical or complex products

8. Export Control: Export restriction provisions - include when products are subject to export controls

What schedules should be included in a Authorized Reseller Agreement?

1. Schedule 1 - Products: Detailed list of authorized products for resale, including specifications and prices

2. Schedule 2 - Territory: Detailed definition of authorized sales territory, including any excluded areas

3. Schedule 3 - Commercial Terms: Detailed pricing structures, discounts, and payment terms

4. Schedule 4 - Performance Targets: Specific sales targets and performance metrics

5. Schedule 5 - Technical Requirements: Technical specifications and support requirements

6. Schedule 6 - Trademark Usage Guidelines: Detailed guidelines for use of supplier's trademarks and branding

7. Appendix A - Reporting Templates: Standard forms for sales reports and performance tracking

8. Appendix B - Service Level Agreement: Detailed service level requirements and metrics

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions




































Clauses









































Relevant Industries

Technology

Consumer Electronics

Automotive

Industrial Equipment

Software and IT

Healthcare Equipment

Telecommunications

Construction Materials

Retail

Manufacturing

Medical Devices

Fashion and Luxury Goods

Food and Beverage

Pharmaceuticals

Home Appliances

Relevant Teams

Legal

Sales

Commercial Operations

Business Development

Compliance

Supply Chain

Distribution

Channel Management

Partner Relations

Contract Administration

International Trade

Operations

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Distribution Manager

Channel Manager

Regional Sales Manager

Compliance Officer

Operations Director

Supply Chain Manager

Partner Relations Manager

Commercial Operations Manager

General Counsel

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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