Module 4 · Chapter 8

Exclusivity, Non-Solicitation and Resale Prices

The software company and its partner sell the same app to the same kind of business. The agreement sets who may sell to whom, and leaves the partner free to set its own prices.

≈ 8 min read 8-question test

In this chapter

  • How Tressick gets a one-year head start over rival HR consultancies
  • How Larchpay is kept away from Tressick's clients, and when it may deal with them
  • Why only Tressick sets its prices, and what to do when someone asks for a minimum

8.1Who may sell to whom, in one paragraph

Larchpay and Tressick sell the same app to the same kind of business, so the Agreement sets rules on who may sell to whom. Clause 11.1 gives Tressick a year of exclusivity: no rival HR consultancy may sell the app under its own brand. Clause 11.3 is a non-solicitation promise: Larchpay must not market its own app to Tressick's clients. Clause 8.3 lets Tressick alone set its prices, because competition law forbids a supplier to fix a reseller's minimum price.

Key point

Clause 11 protects Tressick's business, and clause 8.3 keeps the whole Agreement lawful. Tressick gets a head start and keeps Larchpay away from its clients. Larchpay may suggest a price, but never fix a minimum one.

Also in this chapter

  1. A one-year head start for Tressick
  2. Larchpay keeps away from Tressick's clients
  3. Only Tressick sets the price
  4. A request for a minimum price
  5. Your job

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