Sub Agent Contract for the United States

Sub Agent Contract Template for United States

A Sub Agent Contract is a legally binding agreement used in the United States that establishes the relationship between a principal agent and a sub-agent. This document outlines the scope of authority, territorial restrictions, compensation structure, and obligations of the sub-agent while ensuring compliance with federal and state-specific agency laws. It includes provisions for protecting the principal's interests while enabling the sub-agent to effectively represent the business.

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What is a Sub Agent Contract?

The Sub Agent Contract serves as a critical document in business operations where a principal agent needs to delegate authority to additional representatives. This agreement, governed by U.S. federal and state laws, is commonly used in industries such as insurance, real estate, and financial services where multi-level representation is necessary. The contract defines the hierarchical relationship, outlines specific authorities granted, establishes compensation structures, and includes protective clauses for all parties involved. It's essential for maintaining clear lines of responsibility and ensuring compliance with relevant regulations while protecting the interests of all parties in the agency relationship.

What sections should be included in a Sub Agent Contract?

1. Parties: Identifies the principal agent and sub-agent, including full legal names and addresses

2. Background: Explains the context of the agreement and the principal agent's authority to appoint sub-agents

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Details of the sub-agent's appointment and scope of authority

5. Territory: Geographical area where sub-agent is authorized to operate

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

7. Compensation: Commission structure and payment terms

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

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

1. Non-Compete: Restrictions on competitive activities - used when protecting market share in specific territories

2. Training Requirements: Specific training obligations - used when specific qualifications or certifications are needed

3. Performance Metrics: Specific targets and evaluation criteria - used when performance-based compensation is included

4. Marketing and Branding: Guidelines for using principal's brand - used when sub-agent will represent the brand publicly

What schedules should be included in a Sub Agent Contract?

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

2. Schedule B - Territory Description: Detailed description of geographical boundaries

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

4. Schedule D - Required Qualifications: List of required licenses, certifications, or qualifications

5. Appendix 1 - Reporting Templates: Standard forms for activity and performance reporting

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

Federal Agency Law: Common law principles governing agency relationships, including fiduciary duties, scope of authority, and principal-agent relationships

Fair Labor Standards Act (FLSA): Federal law establishing standards for wage and hour requirements, potentially applicable if sub-agent could be classified as an employee

IRS Independent Contractor Guidelines: Federal regulations determining classification of workers as independent contractors vs employees, including control tests and tax implications

Federal Anti-Discrimination Laws: Various federal laws prohibiting discrimination in business relationships, including Civil Rights Act, ADA, and ADEA

Foreign Corrupt Practices Act (FCPA): Federal law prohibiting bribery of foreign officials, relevant for international business dealings through sub-agents

State Agency Laws: State-specific regulations governing agency relationships and requirements for sub-agency arrangements

State Labor Laws: State-specific employment regulations that may affect sub-agent relationships and worker classification

State Licensing Requirements: State-specific licensing and permit requirements for agents and sub-agents in regulated industries

State Contract Laws: State-specific contract formation and enforcement requirements, including statute of frauds and contract interpretation principles

State Employment Classification Rules: State-specific tests and criteria for determining worker classification status

Industry-Specific Insurance Regulations: Specific regulations governing sub-agents in the insurance industry, including licensing and compliance requirements

Real Estate Agency Regulations: Specific regulations governing sub-agents in real estate transactions, including disclosure requirements and fiduciary duties

Securities Regulations: Federal and state securities laws affecting sub-agents in financial services, including registration and compliance requirements

Scope of Authority Provisions: Contractual elements defining the exact powers and limitations of the sub-agent's authority to act on behalf of the principal

Territory Restrictions: Contractual provisions defining geographical or market limitations on sub-agent's activities

Commission Structures: Contractual terms defining compensation arrangements, including commission rates, payment terms, and conditions

Confidentiality Requirements: Contractual provisions protecting confidential information and trade secrets shared with sub-agents

Non-Compete Clauses: Contractual restrictions on competitive activities, subject to state-specific enforcement limitations

Termination Provisions: Contractual terms specifying conditions and procedures for ending the sub-agent relationship

Liability and Indemnification: Contractual provisions allocating risk and responsibility between parties, including insurance requirements and indemnification obligations

Dispute Resolution Mechanisms: Contractual procedures for resolving conflicts, including choice of law, jurisdiction, and arbitration provisions

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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