Value-Added Reseller Agreement Meaning

Value-Added Reseller Agreement Meaning

Value-added resellers can`t really control the cost of the product they sell, and the entire resale process is sometimes not transparent. Sometimes manufacturers will try to mitigate this problem by offering resellers a discount that will allow a reseller to better control the prices it charges its customers. It is important to ensure that a VAR agreement is in line with commercial objectives and that its provisions are realistic. Since VAR agreements are legally binding, non-compliance with contractual conditions can result not only in early termination of the contract, but also in legal action and fines. The added value of resellers plays an important and prominent role in the information technology sector. Value-added resellers exist because they are an important distribution channel for manufacturers, particularly in the area of information technology. A value-added reseller accepts a basic hardware or software product or system and adapts a set of additional system add-ons for a customer. The dealer is not the manufacturer of the devices, but is expected to have a thorough knowledge of the product to adapt, install, test and maintain it properly for the customer. An information technology company recognizes the usefulness of value-added resellers and generally offers product discounts to increase their revenue through this channel. Some of these resellers may be exclusive to a business, but most carry a few or more brands to offer more choice to customers. Each contracting party undertakes to provide support at any time, before and after the termination of this Agreement, and, at any time, to support its senior managers, directors, employees, representatives, representatives and advisors, upon request, to a party who has acquired the ownership of the intellectual property in accordance with the above intellectual property or its name at the expense of the applicant party. , in order to guarantee the intellectual property and copyright rights of the applicant.

, patents, trademarks or other intellectual property rights related to them in all countries. The obligations of the parties covered in this section are applicable indefinitely. In addition, a retailer has little or no control over the quality or characteristics of its product and must rely on its manufacturer to adapt to changing customer requirements. An added value provider (VAR) is a company that adds features or services to an existing product and then resells it (usually to end-users) as an integrated product or a complete “key” solution. This practice often takes place in the electronics or information technology sectors, where, for example. B, a var can pool a software application with supplied hardware. [Citation required] A VAR agreement is a legal contract between a producer and a value-added reseller, which defines the rights and obligations of both parties. A VAR buys a product from a manufacturer, somehow increases the added value for that product, and then sells the product as its own. An AGREEMENT of the VAR sets out the conditions to be met during this process.

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