Before entering into a private label agreement lets first understand what a private label means. A private label is a product or service that is specifically produced or made available by one company for offer under another company’s trademark.
For example, credit cards, these are offered by different bank brands with their labels on. But these cards are all powered by some other source, e.g., VISA, MASTER, etc. Any agreement between the above parties is known as a Private Label Agreement.
Free Private Label Agreement Template
Here is preview of this Private Label Agreement in MS Word file format.
Terms and Conditions of Private Label Agreement
A private label agreement serves as a legal contract, so it should cover the following essential points:
- Complete name of parties getting into the agreement all in capital letters to fully highlight the names of the parties involved.
- Complete address of the parties getting into agreement all in capital letters to fully highlight the address of the parties involved.
- The date on which both the parties have decided to get into this agreement should be in the beginning of the agreement.
- Label Approval
- Should hold a clause regarding handling of confidential information.
- Have a clause holding detailed information regarding protection against damage or loss.
- A clause governing negotiations.
- Explain the process of changes in this private label agreement in future.
- A clause explaining complete terms and conditions.
- A clause explaining what/when this agreement would stand void/terminated.
- The governing laws of the state.
- Write down mutual obligations and duties along with target objective or goal
- A clause to state the amount and timing of the payment.
- Mention the time period of its effectiveness.
- In the end, the agreement is to hold the official signatures and/or stamp of the parties involved in the agreement to make the contract official by law.
- Keep a record of this agreement after signing it.
Common Flaws in a Private Label Agreement
- Why and Wherefore Clause. It is necessary to conclude this portion of an agreement.
- Terms and Conditions. Define & explain all terms and conditions to avoid any misunderstanding.
- Identification of Parties. Official titles along with their signatures.
- Official Signature to Changes. Any change, whether it is whited-out, in written, or appended on a separate sheet of paper, must be signed by authorized personal of parties involved.
- Attachments. Always mark and identify auxiliary provisions.
Tips for a Private Label Agreement for Completion
- Keep the language of the agreement simple, and to the point.
- Always use positive words and language in an agreement.
- In order to avoid confusion things should be very specific among the parties.
- Both parties must agree all terms and conditions.