Sub Agent Contract

Sub Agent Contract Template for Singapore

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Key Requirements PROMPT example:

"I need a Sub Agent Contract for appointing a real estate sub-agent in Singapore to handle luxury property sales in the Central Region, with a 3% commission structure and strict non-compete provisions for a two-year term starting January 2025."

Document background

The Sub Agent Contract is essential in business arrangements where an existing agent needs to delegate certain responsibilities to another party while maintaining control and accountability. This contract type is commonly used in Singapore's business environment, particularly in sectors requiring multiple layers of representation such as insurance, real estate, and financial services. The document addresses key aspects including territorial rights, commission structures, compliance with Singapore regulations, and protection of both parties' interests. A Sub Agent Contract becomes necessary when business expansion requires additional representation while maintaining the original agency relationship's integrity.

Suggested Sections

1. Parties: Identification and details of the Principal Agent and Sub Agent

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of authority granted to Sub Agent

5. Territory and Exclusivity: Geographical area of operation and exclusivity terms

6. Duties and Responsibilities: Obligations of the Sub Agent

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

8. Term and Termination: Duration of agreement and termination provisions

9. Confidentiality: Protection of confidential information

Optional Sections

1. Non-Compete: Restrictions on competitive activities - used when protecting market position is crucial

2. Intellectual Property: IP rights and usage - included when IP assets are involved in the agency relationship

3. Insurance: Insurance requirements - required when specific industry regulations require insurance coverage

4. Training and Support: Training obligations and support services - included when product/service complexity requires specific training

5. Data Protection: PDPA compliance requirements - necessary when personal data processing is involved

Suggested Schedules

1. Commission Schedule: Detailed breakdown of commission rates and calculations

2. Territory Map: Geographical representation of assigned territory

3. Product/Service List: Details of products/services covered by the agreement

4. Performance Metrics: KPIs and performance evaluation criteria

5. Standard Operating Procedures: Detailed procedures for common operations

6. Compliance Requirements: Industry-specific regulatory 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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Insurance
Real Estate
Financial Services
Manufacturing
Travel
Retail

Relevant Teams

Legal
Sales
Business Development
Compliance
Operations
Finance

Relevant Roles

Sales Director
Business Development Manager
Agency Manager
Compliance Officer
Regional Manager
Channel Partner Manager

Industries

Civil Law Act: Primary legislation governing agency relationships and civil law matters in Singapore, establishing fundamental principles of agency law and fiduciary duties

Contract Law Act: Establishes the framework for contract formation, validity, and enforcement in Singapore, including principles of offer, acceptance, consideration, and contractual remedies

Employment Act: Regulates employment relationships and may be relevant if the sub-agency arrangement could be construed as employment

Central Provident Fund Act: Mandatory social security savings scheme that may apply if the relationship is deemed employment-based

Work Injury Compensation Act: Provides framework for compensation in case of work-related injuries, relevant if sub-agents are considered employees

Employment of Foreign Manpower Act: Regulates the employment of foreign workers in Singapore, applicable if foreign sub-agents are involved

Competition Act: Prohibits anti-competitive practices and agreements, including certain territorial restrictions or exclusive arrangements

Sale of Goods Act: Relevant for sub-agents involved in sale of goods, establishing rights and obligations in commercial transactions

Companies Act: Governs corporate entities and their operations, relevant when parties are registered companies

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data, crucial for handling client information

Insurance Act: Specific regulations for insurance agents and sub-agents operating in the insurance sector

Estate Agents Act: Governs real estate agents and sub-agents, including licensing and conduct requirements

Securities and Futures Act: Regulates financial services activities, relevant for sub-agents in financial sector

Consumer Protection (Fair Trading) Act: Protects consumer interests and establishes fair trading requirements

Mediation Act: Framework for mediation as a dispute resolution mechanism in Singapore

Arbitration Act: Governs arbitration proceedings and enforcement of arbitral awards in Singapore

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Authors

Alex Denne

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