What is "sell on" bonuses in business contracts?

[Min George]

I saw a business contract that had what was termed as a "sell on bonus". What does a "sell on" bonus represent in business contracts? Who benefits from it and what are the reasons it is inserted into contracts?

 

[kit_hung]

A sell-on bonus is a clause in a business contract that provides a financial incentive to the original seller when a product or asset is resold later. This means that the original seller can receive a bonus if the buyer resells it at a profit.

The main beneficiary is the original seller, especially if they sold something with an expected increase in value. This clause is put in place to recognize the original contribution and to provide financial transparency. It also increases the incentive to do business honestly.