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Sub Agency Agreement Template for Qatar

A Sub Agency Agreement under Qatari law is a legally binding document that establishes and regulates the relationship between a Principal's main agent and a sub-agent for the distribution, sale, or representation of products or services within a specified territory in Qatar. This agreement must comply with Qatar's Commercial Agency Law (Law No. 8 of 2002) and related regulations, including registration requirements with the Ministry of Commerce and Industry. The document outlines the rights, obligations, commission structures, and operational parameters while ensuring compliance with local agency laws and commercial practices.

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What is a Sub Agency Agreement?

The Sub Agency Agreement is essential for businesses operating in Qatar who wish to extend their distribution or representation network through a secondary agent. This document is particularly relevant when a main agent, already representing a foreign principal in Qatar, needs to appoint additional sub-agents to enhance market coverage or provide specialized services. The agreement must carefully address the requirements of Qatar's Commercial Agency Law, including proper registration, territorial rights, commission structures, and termination provisions. It's commonly used in situations where specialized market knowledge, technical expertise, or additional distribution channels are needed to effectively serve specific market segments or geographical areas within Qatar.

What sections should be included in a Sub Agency Agreement?

1. Parties: Identification of Principal, Main Agent, and Sub-Agent with full legal details

2. Background: Context of the agreement, including reference to the main agency agreement

3. Definitions: Key terms used throughout the agreement

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

5. Duration and Renewal: Term of the agreement and renewal provisions

6. Rights and Obligations of Sub-Agent: Detailed responsibilities and authorized activities of the sub-agent

7. Rights and Obligations of Main Agent: Main agent's commitments and responsibilities towards sub-agent

8. Commission and Payment Terms: Commission structure, calculation method, and payment schedule

9. Performance Targets: Minimum performance requirements and evaluation criteria

10. Intellectual Property Rights: Usage rights and restrictions regarding Principal's IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Compliance: Regulatory compliance requirements and anti-corruption provisions

13. Termination: Grounds for termination and consequences

14. Post-Termination Obligations: Duties and restrictions after agreement ends

15. Governing Law and Jurisdiction: Confirmation of Qatari law governance and dispute resolution

What sections are optional to include in a Sub Agency Agreement?

1. Training and Support: Details of training and support provided by Main Agent or Principal, included when significant technical or product knowledge is required

2. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements, included when sub-agent has significant marketing responsibilities

3. Insurance: Insurance requirements and coverage details, included for high-risk products or services

4. Stock Requirements: Minimum stock levels and warehouse requirements, included for product distribution agreements

5. After-Sales Service: Service and warranty obligations, included for technical products or services

6. Non-Competition: Non-compete provisions during and after the agreement, included when protecting market position is crucial

7. Bank Guarantee: Requirements for performance bonds or guarantees, included for high-value agreements

What schedules should be included in a Sub Agency Agreement?

1. Schedule 1 - Products/Services: Detailed list of products or services covered by the sub-agency

2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions

3. Schedule 3 - Commission Structure: Detailed commission calculations, tiers, and special terms

4. Schedule 4 - Performance Targets: Specific KPIs and measurement criteria

5. Schedule 5 - Technical Requirements: Technical specifications and standards to be maintained

6. Appendix A - Main Agency Agreement Reference: Relevant excerpts or terms from the main agency agreement

7. Appendix B - Standard Operating Procedures: Operational procedures and requirements

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

Jurisdiction

Qatar

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use

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