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Sub Agent Contract Template for Indonesia

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Key Requirements PROMPT example:

Sub Agent Contract

"I need a Sub Agent Contract for appointing an exclusive distributor in Jakarta for our pharmaceutical products, with specific performance targets and quarterly reporting requirements, to commence from March 1, 2025."

Document background
The Sub Agent Contract is essential for businesses operating in Indonesia that utilize multi-tiered agency structures for market penetration and business expansion. This document is typically used when a Principal Agent, who has direct authority from a principal company, needs to delegate certain rights and responsibilities to a Sub Agent to extend market reach or provide specialized services in specific territories. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and Commercial Code (KUHD), while clearly defining the scope of authority, territorial rights, commission structures, and compliance obligations. The Sub Agent Contract is particularly important in protecting all parties' interests by establishing clear boundaries of authority, performance expectations, and accountability measures, while ensuring alignment with local regulatory requirements and business practices.
Suggested Sections

1. Parties: Identification of the Principal Agent and Sub Agent with complete legal names and addresses

2. Background: Context of the appointment, including reference to the main agency agreement and authority to appoint sub-agents

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Appointment and Scope: Formal appointment of the Sub Agent and detailed scope of authority

5. Territory and Products: Defined geographical area and products/services covered by the sub-agency

6. Rights and Obligations of Sub Agent: Detailed responsibilities, duties, and rights of the Sub Agent

7. Rights and Obligations of Principal Agent: Responsibilities and obligations of the Principal Agent towards the Sub Agent

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

9. Reporting and Accountability: Requirements for reporting, record-keeping, and accountability measures

10. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP

11. Confidentiality: Obligations regarding confidential information and trade secrets

12. Term and Termination: Duration of agreement and grounds for termination

13. Post-Termination Obligations: Obligations and restrictions after agreement ends

14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

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

Optional Sections

1. Non-Competition: Restrictions on competing activities during and after the agreement - include when exclusivity is required

2. Performance Targets: Specific sales or performance targets - include when performance metrics are crucial

3. Training and Support: Details of training and support provided - include when significant training is part of the relationship

4. Insurance: Insurance requirements - include when specific insurance coverage is necessary

5. Bank Guarantee: Requirements for bank guarantees - include when financial security is needed

6. Compliance with Anti-Corruption Laws: Detailed anti-corruption compliance requirements - include for high-risk territories or industries

7. Sub-Sub Agents: Rights and restrictions regarding appointment of sub-sub agents - include when further delegation might be needed

8. Marketing and Promotion: Specific marketing obligations and restrictions - include when marketing is a key responsibility

Suggested Schedules

1. Schedule 1: Products and Services: Detailed list of products/services covered by the agreement

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

3. Schedule 3: Commission Structure: Detailed commission calculations, rates, and examples

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

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

6. Schedule 6: Trademark Usage Guidelines: Guidelines for use of Principal's trademarks and branding

7. Appendix A: Required Documentation: List of required licenses, permits, and documentation

8. Appendix B: Contact Details: Key contact persons and communication protocols

Authors

Alex Denne

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

Relevant legal definitions








































Clauses








































Relevant Industries

Manufacturing

Consumer Goods

Industrial Products

Technology

Pharmaceuticals

Insurance

Real Estate

Automotive

Agriculture

Telecommunications

Energy

Construction

Trading & Distribution

Financial Services

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Risk Management

Contract Administration

Distribution

Regional Operations

Relevant Roles

Commercial Director

Business Development Manager

Sales Director

Legal Counsel

Compliance Officer

Regional Manager

Country Manager

Channel Manager

Agency Manager

Operations Director

Contract Administrator

Risk Manager

Sales Operations Manager

Territory Manager

Distribution 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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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