Dear Sir Madam, I have a client, X who h...

Asked by roddygee on 04-09-2014 16:40:06
Question posted in the Insurance Law category relating to Gauteng
Question value: R 0.00

Dear Sir / Madam,
I have a client, X who has a contractual agreement with a product provider (lets say Microsoft) as a preferred provider.
They in turn use resellers who sell the product on to clients and receive commission. There is no legal agreement between the aforementioned X and the reseller, however if the reseller defaults on the monthly ongoing contract between them and THEIR client, X has a back to back agreement with the supplier that holds them liable for the debt of the reseller's debt.
While this is a lucrative arrangement X is vulnerable should the reseller be liquidated.
Is there an insurance product anywhere that would cover this?
Many Thanks,

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