Subagency Agreement for the United States

Subagency Agreement Template for United States

A Subagency Agreement is a legal document used in the United States that establishes a relationship between a primary agent and a subagent, where the primary agent delegates certain authorities and responsibilities to the subagent. The agreement defines the scope of authority, duties, compensation, and terms of the relationship while ensuring compliance with federal and state agency laws. It includes provisions for protecting the interests of all parties involved and typically operates within the framework of the primary agency agreement.

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What is a Subagency Agreement?

A Subagency Agreement is essential when a primary agent needs to delegate certain powers and responsibilities to another party while maintaining oversight and control. This document is commonly used across various industries in the United States where complex agency relationships exist. The agreement details the hierarchical relationship between parties, specifies the scope of delegated authority, outlines compensation structures, and establishes clear boundaries of responsibility. When drafting a Subagency Agreement, careful consideration must be given to both federal and state agency laws, as well as industry-specific regulations that may impact the relationship.

What sections should be included in a Subagency Agreement?

1. Parties: Identification of primary agent and subagent

2. Background: Context of the agreement and relationship to primary agency agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment: Formal appointment of subagent and scope of authority

5. Duties and Responsibilities: Specific obligations of subagent

6. Compensation: Payment terms and commission structure

7. Term and Termination: Duration and conditions for ending agreement

8. Confidentiality: Protection of sensitive information

What sections are optional to include in a Subagency Agreement?

1. Territory Restrictions: Geographic limitations on subagent's authority - include when activities are geographically restricted

2. Non-Compete: Restrictions on competitive activities - include when protecting business interests from competition

3. Insurance Requirements: Required insurance coverage - include when subagent needs specific insurance

What schedules should be included in a Subagency Agreement?

1. Schedule A - Commission Structure: Detailed breakdown of compensation calculations

2. Schedule B - Territory Map: Geographic boundaries of subagent's authority

3. Schedule C - Primary Agency Agreement: Reference copy of main agency agreement

4. Schedule D - Required Qualifications: List of necessary licenses or certifications

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 Principles: Common law principles governing agency relationships, including the Restatement (Third) of Agency, which defines fundamental aspects of principal-agent relationships

Fair Labor Standards Act: Federal law that establishes standards for employment relationships, which may be relevant if the subagency agreement involves employment aspects

Federal Antitrust Laws: Sherman Act and Clayton Act provisions that regulate competition and prevent anti-competitive practices in agency relationships

Internal Revenue Code: Federal tax regulations governing the tax implications of agency relationships and compensation structures

State Agency Laws: State-specific regulations governing agency relationships, which vary by jurisdiction

State Licensing Requirements: Industry-specific licensing and permit requirements that vary by state and may affect the validity of the subagency relationship

State Contract Laws: State-specific rules governing contract formation, enforcement, and interpretation

State Employment Laws: State-specific employment regulations that may affect the subagency relationship if it involves employment aspects

Industry-Specific Regulations: Specialized regulations for specific sectors such as real estate, insurance, securities, and banking that may impose additional requirements on subagency relationships

Fiduciary Duty Obligations: Legal obligations requiring agents to act in the best interest of their principals, including duties of loyalty, care, and disclosure

Vicarious Liability Principles: Legal doctrine determining when a principal can be held liable for the acts of their agents and subagents

Authority Limitations: Legal principles governing the scope and limitations of an agent's authority to act on behalf of the principal

Indemnification Requirements: Legal provisions governing the allocation of risk and responsibility for losses or damages between parties in the agency relationship

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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