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Sub Agent Contract for Saudi Arabia

Sub Agent Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates the relationship between a principal agent and their appointed sub-agent. The document outlines the terms under which the sub-agent is authorized to act on behalf of the principal agent in specified territories or for specific products/services. It complies with Saudi Commercial Agencies Law and Sharia principles, incorporating essential elements such as commission structures, territorial rights, performance obligations, and reporting requirements. The agreement includes provisions for registration with relevant Saudi authorities and addresses key aspects of Saudi commercial law requirements.

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What is a Sub Agent Contract?

The Sub Agent Contract is essential for businesses operating in Saudi Arabia who wish to expand their commercial reach through appointed representatives. This document is particularly relevant when a principal agent, already representing a company in Saudi Arabia, needs to appoint additional representatives to cover specific territories or market segments. The agreement must comply with Saudi Commercial Agencies Law, Commercial Law, and Sharia principles, requiring registration with the Ministry of Commerce. It typically includes detailed provisions on territorial rights, commission structures, performance requirements, and compliance obligations. The document is crucial for businesses seeking to establish a compliant and effective distribution network while maintaining control over their commercial representation in the Saudi market.

What sections should be included in a Sub Agent Contract?

1. Parties: Identification of the Principal Agent and Sub-Agent with 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: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of sub-agent, defining territory and products/services covered

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Rights and Obligations of Sub-Agent: Detailed responsibilities, performance requirements, and conduct expectations

7. Commission Structure: Payment terms, commission rates, and calculation methods

8. Reporting Requirements: Regular reporting obligations and documentation requirements

9. Intellectual Property Rights: Usage rights and restrictions regarding principal's IP

10. Confidentiality: Confidentiality obligations and handling of sensitive information

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

12. Termination: Grounds for termination and termination procedures

13. Post-Termination Obligations: Obligations and restrictions following agreement termination

14. Governing Law and Jurisdiction: Specification of Saudi law as governing law and dispute resolution mechanisms

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Performance Targets: Specific sales or performance targets, used when the principal agent wants to set measurable objectives

2. Training Requirements: Mandatory training obligations, included when specific product or service knowledge is required

3. Marketing and Promotion: Marketing obligations and guidelines, used when sub-agent has specific promotional responsibilities

4. Insurance Requirements: Specific insurance coverage requirements, included for high-risk products or services

5. Bank Guarantee: Requirements for bank guarantees or other financial security, used for high-value contracts

6. Compliance with FCPA/Anti-corruption: Detailed anti-corruption provisions, essential when dealing with international transactions

7. Data Protection: Specific data handling requirements, included when personal data processing is involved

8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term contracts

What schedules should be included in a Sub Agent Contract?

1. Schedule 1 - Territory Definition: Detailed description of geographical territory covered by sub-agency

2. Schedule 2 - Products/Services: Comprehensive list of products or services covered under the agreement

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations based on product type or volume

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

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

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

7. Appendix B - Compliance Procedures: Detailed compliance requirements and procedures

8. Appendix C - Marketing Guidelines: Brand guidelines and marketing requirements

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

Saudi Arabia

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions






































Clauses










































Relevant Industries

Retail

Manufacturing

Automotive

Consumer Goods

Industrial Equipment

Technology

Healthcare

Construction

Energy

Telecommunications

Professional Services

Logistics

Fashion and Luxury Goods

Food and Beverage

Pharmaceuticals

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Distribution

Finance

Risk Management

International Trade

Corporate Affairs

Relevant Roles

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Sales Director

Regional Manager

General Manager

Contract Manager

Chief Executive Officer

Chief Commercial Officer

Operations Manager

Distribution Manager

Channel Manager

Agency Relations Manager

Legal Director

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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