Compensation is the combination of losses that occur during a process related to the agreement. This clause can be agreed between the parties, combining the burden of losses in certain incidents. Since the VAR agreement is an important legal document that represents the legal obligations, responsibilities and legal rights of both parties, as well as the key elements that must be included in the clauses of the agreement, which are as follows: Since the value-added product or service is the only reason why both parties have concluded this agreement. Therefore, a brief summary of the specific product or service that the VAR wishes to develop or a detailed description of the product as an annex to the agreement. It is important to ensure that a VAR agreement is in line with the company`s objectives and that its terms are realistic. Since VAR agreements are legally binding, failure to comply with the terms of the contract can lead not only to early termination of the contract, but also to legal proceedings and fines. Termination of the VAR Agreement may be for a breach of the obligations of the parties or for any other reason agreed upon by the parties, which may be specified in a clause of the Contract. A VAR agreement is a legal contract between a manufacturer and a value-added reseller that defines the rights and obligations of both parties. A VAR buys a product from a manufacturer, upgrades that product in some way, and then redistributes the product as its own. A VAR agreement defines the conditions that must be met during this process. Most agreements tend to stipulate that the appointment of this agreement is not exclusive to the VAR of the agreement, as there are different VARs that would develop the product/service in different countries, but would include an exclusivity clause for a particular industry or field, such as the insurance industry or the military sector. Since conflicts may arise between the parties in connection with the VAR Agreement, a clause governing the applicable law applicable to the Dispute may help inform the parties of their rights and any legal actions that may be taken to resolve any dispute that may arise between them.

VAR agreements are in effect for a specific period of time, known as the contract term. This section of the agreement should specify the exact date of entry into force of the agreement and the duration of the contract. .