You should also con­sult local legal advice before sign­ing a sales con­tract, because there may be local laws that you need to con­sid­er — for exam­ple, it may be nec­es­sary for a sales com­pa­ny to be owned by nation­als of the coun­try. Whistle­blow­ing such an agree­ment in some coun­tries can result in sig­nif­i­cant claims, which requires you to seek legal advice before the text is final­ized. If you have more than one prod­uct line, it may be help­ful to lim­it the agree­ment to one or two lines to see how things are going. You can add more and more prod­ucts lat­er. As far as the ter­ri­to­ry is con­cerned, it has to be clear­ly defined. The agree­ment should also spec­i­fy the pay­ment cur­ren­cy. This is why both the com­pa­ny and the reseller agree to and take into account the rec­i­p­ro­cal com­mit­ments set out in this agree­ment. A reseller agree­ment con­tains many things, but we will focus on five basic guide­lines that fol­low: this agree­ment can be trans­lat­ed into alter­na­tives, each of which is con­sid­ered unique, but all con­sid­ered to be the same agree­ment. Once you have select­ed your dis­trib­u­tor, make sure you have a writ­ten sales con­tract with them, which defines the terms of the deal and allows you to ter­mi­nate the agree­ment if things don‘t work prop­er­ly. See also Giles‘s arti­cle with advice on the appoint­ment of over­seas agents. 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. While you may want Eng­lish law to apply and all dis­putes to be dealt with in Eng­lish courts if the trad­er is based abroad and has no wealth in that coun­try, it could be quite dif­fi­cult to reach a ver­dict and apply it against him. An inter­na­tion­al arbi­tra­tion clause might be preferable.

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.