Sub Agency Agreement for the United States

Sub Agency Agreement Template for United States

A Sub Agency Agreement is a legal contract under US law that establishes a relationship between a principal agent and a sub-agent, allowing the sub-agent to act on behalf of the principal agent within specified parameters. This document outlines the scope of authority, duties, compensation, and obligations of both parties while ensuring compliance with federal and state agency laws. It includes provisions for territory restrictions, performance requirements, and termination conditions.

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What is a Sub Agency Agreement?

A Sub Agency Agreement is essential when a primary agent needs to delegate certain responsibilities to another party while maintaining oversight and control. This document is commonly used in various industries where multi-level agency relationships are necessary for business expansion or specialized service delivery. The agreement, governed by US federal and state agency laws, typically includes detailed provisions about the scope of authority, compensation structures, reporting requirements, and compliance obligations. It's particularly important for ensuring clear delegation of authority while protecting the interests of all parties involved.

What sections should be included in a Sub Agency Agreement?

1. Parties: Identification of Principal Agent and Sub Agent, including full legal names and addresses

2. Background: Context of the agreement, including reference to the main agency agreement and reason for sub-agency

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of sub-agent appointment and scope of authority

5. Duration and Termination: Term of agreement and conditions for termination

6. Duties and Responsibilities: Specific obligations of the sub-agent

7. Compensation: Payment terms, commission structure, and expenses

8. Confidentiality: Protection of confidential information

What sections are optional to include in a Sub Agency Agreement?

1. Territory Restrictions: Geographic limitations of sub-agent authority when specific territorial bounds apply

2. Non-Compete: Restrictions on competing activities during and after the agreement term

3. Insurance Requirements: Specific insurance coverage requirements for the sub-agent

4. Intellectual Property: Rights and restrictions regarding use of intellectual property in the agency relationship

What schedules should be included in a Sub Agency Agreement?

1. Schedule A - Commission Structure: Detailed breakdown of commission calculations and payment terms

2. Schedule B - Territory Definition: Detailed description of geographic territory if applicable

3. Schedule C - Approved Products/Services: List of products or services sub-agent is authorized to represent

4. Schedule D - Performance Metrics: Specific KPIs and performance requirements

5. Appendix 1 - Required Forms: Standard forms and documentation required for sub-agent operations

6. Appendix 2 - Compliance Procedures: Detailed compliance requirements and procedures

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

United States

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Clauses
Industries

Restatement (Third) of Agency: Fundamental legal principles governing agency relationships, including formation, duties, authority types, and termination of agency

Federal Antitrust Laws: Sherman Act and Clayton Act - ensure the sub-agency agreement doesn't create anti-competitive arrangements or violate market competition rules

Foreign Corrupt Practices Act: Federal law prohibiting bribery of foreign officials - relevant if the sub-agency involves international operations

Federal Trade Commission Act: Prohibits unfair or deceptive practices in commerce - affects how sub-agents can operate and represent the principal

State Agency Statutes: State-specific laws governing agency relationships, varying by jurisdiction

State Contract Laws: State-specific requirements for contract formation, enforcement, and remedies

State Licensing Requirements: Industry-specific licensing and permit requirements that may apply to sub-agents

State Franchise Laws: Regulations to ensure the sub-agency arrangement doesn't inadvertently create a franchise relationship

Fair Labor Standards Act: Federal law governing wages, hours, and employment conditions - relevant for worker classification

Independent Contractor Classification Rules: Federal and state guidelines determining whether a sub-agent qualifies as an independent contractor versus employee

Securities Regulations: SEC rules and regulations if the sub-agency involves financial services or securities

Insurance Regulations: State-specific insurance laws and regulations if the sub-agency involves insurance activities

Real Estate Agency Laws: Specific regulations governing real estate agency relationships if applicable

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Privacy and Data Protection Laws: Federal and state regulations governing data privacy, security, and confidentiality requirements

Consumer Protection Laws: Federal and state laws protecting consumer interests in agency relationships and business transactions

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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