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PLAYBOOK TEMPLATES
Reseller Distribution Agreement
A Reseller or Distribution Agreement governs how products are marketed and sold through intermediaries, defining territories, pricing, and performance expectations. This playbook explains negotiation levers around exclusivity, revenue targets, and brand protection.
Warranties and Representations
Negotiation strategy
Ensure the warranty clause aligns with your business goals by specifying the duration and scope. Limit liability by capping potential losses and including clear remedies for breaches.
Propose a warranty period that aligns with industry standards. Offer options for repair, replacement, or refund to manage potential liabilities effectively.
Essential elements
1
Warranty Duration
Specify the warranty period.
2
Performance Standards
Define product quality benchmarks.
3
Remedies for Breach
Outline options for non-compliance.
Action framework
ACCEPT
Propose edits to align the clause with business objectives and limit liability.
EDIT
Reject clauses that expose the company to unlimited liability or lack clear remedies.
ADD
Add language to ensure comprehensive coverage and mutual protection.
PRO TIP
Always review warranty clauses for alignment with company policy and risk management strategies.
Real-world examples
FAVORABLE
Preferred Warranty Clause
"The Seller warrants that the products will conform to the specifications and be free from defects in material and workmanship for a period of [insert duration]. In the event of a breach, the Seller shall, at its option, repair or replace the defective products or refund the purchase price."
NEUTRAL
Standard Warranty Terms
"The Seller provides a warranty for the products as per industry standards."
UNFAVORABLE
Unlimited Warranty Liability
"The Seller warrants the products indefinitely without any limitation on liability."
Alternative scenarios & positions
Extended Warranty Periods
Evaluate scenarios where the warranty period exceeds industry norms, potentially increasing liability and cost. Consider negotiating a shorter period or additional compensation.
High-Risk Products
For high-risk products, ensure warranties are comprehensive and include specific performance standards to mitigate potential issues.
International Sales
In international sales, consider local laws and regulations that may affect warranty terms and ensure compliance.
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WEEK 1
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WEEK 2
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WEEK 3
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WEEK 4
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