There are two main types of contractual arrangements between the dealer and the customer. The first is a descending dealer agreement. Here, the requirements that the dealer can enter into with customers are usually described in the dealer agreement in the form of a calendar. They are generally similar to the standard debitor conditions, which the lender sets. In this article, I discussed some of the specific topics that cause SaaS resellers (and in fact some other types of service sales contracts). On the other hand, from the customer`s point of view, a tripartite agreement can be beneficial, especially when it may be difficult to apportion responsibility for service issues between the dealer and the seller. Under these conditions, a customer may attempt to impose joint and several liability on the seller and dealer for all offences. In theory, a distributor is the same as a dealer. The reseller or distributor will purchase SaaS software and services from the supplier under the terms of a reseller or sales contract. It is then sold to local customers within the dealer or distributor in its own terms and conditions and service level agreement, known as ALS.
When I refer to a SaaS reseller agreement, I mean an agreement whereby, on the other hand, a bottom-up agreement sets the conditions between the seller and the reseller for the provision of the services resulting from negotiations between the dealer and the customer. This type of agreement can result in significant administrative and financial burdens for both the dealer and the seller, but may also be necessary for large corporate customers. Down-and-coming agreements are therefore generally better for suppliers and resellers, but not always passable. The development and negotiation of tripartite contracts also tends to cost more. It is not uncommon to see unwanted errors and ambiguities. If a customer also needs the reseller`s services, they can be added as part of another contract between the parties. Sometimes I am asked to create a document that covers both dealer relationships and referral relationships. There are some advantages to using a single document, but there are also drawbacks. If the reseller is large enough to face potential losses, the relationship with the customer “owns”, has some responsibility in the delivery and/or has a wide margin of appreciation for payments, it may be more appropriate for the reseller to bear this type of loss. This non-exclusive reseller agreement (as well as all parts and annexes of the “Agreement”) will be concluded on January 29, 2004 (“Date of Effect”) of and between Micro Focus (US), Inc.