A software reseller agreement is a contract between two parties in which one is a software manufacturer or seller and other party is a business entity intending to distribute the respective software in a particular territory. Through this agreement the software manufacturer grants the right to the other party to redistribute the software in the agreed territory and in return the second party agrees to pay a fixed license fee or a percentage of sales as royalty to the manufacturer.
A software reseller agreement should confirm to statutory requirements of the land and should be explicit in explaining the details of the software, the territory for which rights are being granted, the time period for which the rights are being granted, the roles and responsibilities of both the parties involved, the license fee and royalty to be paid, the points of conflict and violation, recourse in case of disputes and other general clause pertaining to effective use of software.
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