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Sub Agent Contract for Belgium

Sub Agent Contract Template for Belgium

A Sub Agent Contract governed by Belgian law establishes the legal relationship between a principal agent and a sub-agent, defining the terms under which the sub-agent is authorized to act on behalf of the principal agent in commercial activities. This agreement is structured in accordance with the Belgian Commercial Agency Law of 13 April 1995 and related EU directives, specifically addressing commission structures, territorial rights, obligations of both parties, and termination provisions. The document includes comprehensive provisions for reporting requirements, performance standards, and compliance with Belgian commercial regulations while protecting the interests of all parties involved.

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What is a Sub Agent Contract?

The Sub Agent Contract is essential for businesses operating through multi-tiered agency structures in Belgium, where a principal agent needs to delegate certain commercial responsibilities to sub-agents. This document is particularly relevant when expanding sales networks, entering new territories, or creating specialized distribution channels. It must comply with Belgian Commercial Agency Law and EU regulations, making it suitable for both domestic and cross-border commercial relationships. The contract typically includes detailed provisions on territory definitions, commission structures, reporting obligations, and performance requirements. The Sub Agent Contract is designed to protect all parties' interests while ensuring compliance with mandatory Belgian agency law provisions, including those relating to notice periods, indemnity rights, and termination conditions.

What sections should be included in a Sub Agent Contract?

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

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

3. Definitions: Key terms used throughout the agreement, including Territory, Products, Principal, Commission, etc.

4. Appointment and Scope: Formal appointment of sub-agent, defining territory, products, and extent of authority

5. Duration and Termination: Term of agreement, renewal provisions, and termination circumstances as per Belgian law

6. Sub-Agent's Duties and Obligations: Detailed responsibilities including reporting, compliance, and performance standards

7. Principal Agent's Duties: Obligations regarding support, information, and resources provided to sub-agent

8. Commission Structure: Detailed commission calculations, payment terms, and conditions for earning commission

9. Reporting and Accounting: Requirements for financial reporting, sales reports, and record-keeping

10. Confidentiality: Protection of confidential information and trade secrets

11. Intellectual Property: Usage rights and restrictions regarding trademarks and other IP

12. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes

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

1. Non-Compete Provisions: Restrictions on competitive activities during and after the agreement, used when protecting market position is crucial

2. Performance Targets: Specific sales or performance goals, included when the principal wants to set measurable objectives

3. Training Requirements: Specific training obligations and procedures, used when products/services require specialized knowledge

4. Insurance Requirements: Specific insurance coverage requirements, included when activities carry significant risks

5. Data Protection: GDPR and data handling requirements, included when personal data processing is involved

6. Marketing and Promotion: Guidelines for marketing activities, included when sub-agent will conduct promotional activities

7. Stock Handling: Rules for managing inventory, included when sub-agent will handle physical products

8. Customer Service Standards: Required service levels, included when sub-agent has direct customer contact

What schedules should be included in a Sub Agent Contract?

1. Schedule 1 - Territory Definition: Detailed description of geographical area or market segment covered

2. Schedule 2 - Products/Services: Comprehensive list of products/services the sub-agent is authorized to sell

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product/service

4. Schedule 4 - Reporting Templates: Standard forms for regular reporting requirements

5. Schedule 5 - Performance Metrics: Specific KPIs and measurement criteria

6. Appendix A - Main Agency Agreement Extract: Relevant portions of the principal agency agreement affecting sub-agent

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

8. Appendix C - Compliance Requirements: Specific regulatory and compliance obligations

Authors

Alex Denne

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

Jurisdiction

Belgium

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions









































Clauses








































Relevant Industries

Manufacturing

Retail

Wholesale Distribution

Financial Services

Insurance

Real Estate

Industrial Equipment

Consumer Goods

Technology

Pharmaceutical

Automotive

Agricultural Products

Construction Materials

Professional Services

Telecommunications

Relevant Teams

Legal

Commercial Operations

Sales

Business Development

Compliance

Contract Administration

Distribution

Channel Management

Agency Relations

Commercial Strategy

Relevant Roles

Commercial Director

Sales Manager

Business Development Manager

Channel Manager

Legal Counsel

Compliance Officer

Contract Manager

Agency Network Manager

Territory Manager

Distribution Manager

Sales Operations Manager

Commercial Operations Director

Chief Commercial Officer

Regional Sales Director

Agent Relations 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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