Sub Agent Contract for Pakistan

Sub Agent Contract Template for Pakistan

This document establishes a formal sub-agency relationship under Pakistani law, where a principal agent delegates certain rights and responsibilities to a sub-agent. The agreement, governed by Pakistani contract law including the Contract Act 1872, defines the scope of authority, territorial rights, commission structure, and operational requirements. It includes comprehensive provisions for reporting, compliance with local regulations, and protection of the principal's interests while ensuring clear guidelines for the sub-agent's activities. The document incorporates essential safeguards and compliance mechanisms specific to Pakistani legal requirements while maintaining commercial practicality.

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What is a Sub Agent Contract?

The Sub Agent Contract is a crucial document used when a principal agent wishes to expand their business operations by appointing additional representatives (sub-agents) in Pakistan. This arrangement is common in various industries where geographical expansion or specialized market penetration is required. The contract carefully balances the interests of all parties while ensuring compliance with Pakistani law, particularly the Contract Act 1872 and relevant commercial regulations. It typically includes detailed provisions about territory allocation, commission structures, reporting requirements, and performance expectations. The document is essential for businesses operating through multi-tiered agency structures in Pakistan, providing clear guidelines for authority delegation while maintaining control over brand representation and business operations.

What sections should be included in a Sub Agent Contract?

1. Parties: Identifies and provides full details of the Principal Agent and Sub-Agent, including registration numbers and addresses

2. Background: Explains the context of the agreement, including reference to the principal agency agreement and the need for sub-agency

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Appointment and Scope: Details the appointment of the sub-agent and defines the precise scope of their authority

5. Territory and Exclusivity: Defines the geographical area of operation and any exclusivity rights granted to the sub-agent

6. Duties and Responsibilities: Outlines the specific duties, obligations and responsibilities of the sub-agent

7. Commission Structure: Details the commission rates, calculation methods and payment terms

8. Reporting Requirements: Specifies the reporting obligations of the sub-agent to the principal agent

9. Term and Termination: Specifies the duration of the agreement and circumstances for termination

10. Confidentiality: Establishes obligations regarding confidential information

11. Non-Competition: Outlines restrictions on competing activities during and after the agreement

12. Indemnification: Details mutual indemnification obligations

13. Governing Law: Specifies Pakistani law as the governing law and jurisdiction

14. Dispute Resolution: Outlines the process for resolving disputes

15. General Provisions: Contains standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Sub Agent Contract?

1. Intellectual Property Rights: Include when the sub-agent will be using the principal's IP or creating new IP

2. Training and Support: Include when specific training or ongoing support will be provided to the sub-agent

3. Performance Targets: Include when specific performance metrics or sales targets are required

4. Marketing and Promotion: Include when the sub-agent has specific marketing responsibilities or restrictions

5. Insurance Requirements: Include when specific insurance coverage is required from the sub-agent

6. Data Protection: Include when personal data processing is involved in the sub-agent's activities

7. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

8. Bank Guarantee: Include when financial security is required from the sub-agent

What schedules should be included in a Sub Agent Contract?

1. Schedule 1 - Territory Description: Detailed description of the geographical territory covered by the sub-agent

2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, calculations and examples

3. Schedule 3 - Products/Services: List and description of products or services the sub-agent is authorized to sell/promote

4. Schedule 4 - Reporting Templates: Standard forms and templates for required reports

5. Schedule 5 - Performance Metrics: Detailed KPIs and performance measurement criteria

6. Appendix A - Principal Agency Agreement Extract: Relevant excerpts from the principal agency agreement

7. Appendix B - Standard Operating Procedures: Detailed operational procedures and guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Pakistan

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Insurance

Real Estate

Financial Services

Manufacturing

Pharmaceutical

Automotive

Consumer Goods

Technology

Telecommunications

Travel and Tourism

Agriculture

Construction

Import/Export

Retail

Professional Services

Relevant Teams

Legal

Sales

Business Development

Compliance

Commercial

Operations

Distribution

Contract Administration

Risk Management

Finance

Relevant Roles

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Commercial Director

Regional Manager

Channel Manager

Distribution Manager

Contract Administrator

Agency Manager

Operations Manager

Chief Commercial Officer

Legal Manager

Sales Operations Manager

Territory Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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