The Sub Agency Agreement is a crucial document used when a principal agent, who has existing authority to act on behalf of a principal, wishes to delegate certain responsibilities to another party (the sub-agent) in Malaysia. This arrangement is common in various commercial contexts, particularly in distribution, sales, and representation relationships. The document comprehensively addresses the scope of delegated authority, territorial rights, commission structures, performance expectations, and compliance requirements under Malaysian law. It is essential for businesses expanding their reach through indirect representation while maintaining control over their commercial relationships. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant agency regulations, while protecting the interests of all parties involved in the agency chain.
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1. Parties: Identification of the Principal Agent and Sub-Agent, including full legal names and registration details
2. Background: Context of the agreement, explaining the existing agency relationship and need for sub-agency
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of sub-agent appointment and detailed scope of authority
5. Term and Territory: Duration of the agreement and geographical area of operation
6. Sub-Agent's Duties and Obligations: Detailed responsibilities, reporting requirements, and performance standards
7. Principal Agent's Duties and Obligations: Support, information, and resources to be provided to the sub-agent
8. Commission and Payment Terms: Compensation structure, payment timing, and calculation methods
9. Compliance and Reporting: Regulatory compliance requirements and reporting obligations
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement
12. Intellectual Property: Ownership and usage rights of IP, including trademarks and marketing materials
13. Liability and Indemnification: Risk allocation and indemnification obligations
14. Termination: Grounds for termination, notice requirements, and post-termination obligations
15. General Provisions: Standard boilerplate clauses including governing law, notices, and amendments
1. Performance Targets: Specific sales or performance targets, used when the sub-agency relationship is performance-based
2. Training Requirements: Mandatory training programs and certifications, included when specific qualifications are required
3. Marketing and Promotion: Guidelines for marketing activities, included when sub-agent has marketing responsibilities
4. Insurance Requirements: Specific insurance coverage requirements, included for high-risk activities or industries
5. Data Protection: Specific data handling requirements, included when personal data processing is involved
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets or regions
7. Dispute Resolution: Specific dispute resolution procedures, included when alternative dispute resolution is preferred
1. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Territory Map: Geographical boundaries of the sub-agent's authorized territory
3. Product/Service List: Detailed list of products or services the sub-agent is authorized to sell/represent
4. Reporting Templates: Standard forms and formats for regular reporting requirements
5. Performance Metrics: Detailed KPIs and measurement criteria
6. Approved Marketing Materials: Templates and guidelines for marketing and promotional materials
7. Compliance Checklist: List of regulatory requirements and compliance procedures
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Insurance
Manufacturing
Distribution
Retail
Financial Services
Technology
Telecommunications
Automotive
Consumer Goods
Pharmaceuticals
Travel and Tourism
Import/Export
Relevant Teams
Legal
Commercial
Business Development
Sales
Operations
Compliance
Contract Administration
Agency Management
Distribution
Partnership Management
Relevant Roles
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Sales Director
Operations Manager
Agency Manager
Contract Administrator
Regional Manager
Distribution Manager
Channel Manager
Partnership Manager
Chief Executive Officer
Managing Director
General Manager
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