EXPLANATORY NOTES FOR THE SUB-CONTRACTOR SERVICES AGREEMENT, WHERE SUCH AGREEMENT IS IN FAVOUR OF THE RECEIVER OF SERVICES

This agreement is for use by smmes (or any other entity for that matter) that REQUIRE the provision of sub-contracting services. It is an agreement that is structured to protect the rights of the party that RECEIVES the services, i.e. the smme in question.

Note that this agreement can only be used where the receiver of services does not constitute a “consumer” in terms of the Consumer Protection Act. i.e the receiver MUST BE a juristic entity with a turnover or asset value equal to, or more than R2m at the time of the transaction.

Note: we will shortly make available agreements that regulate transactions that fall under the Consumer Protection Act. This agreement is for transactions that DO NOT fall under the Consumer Protection Act. Always make certain that the receiver of services under this agreement is neither a juristic person with assets or a turnover UNDER R2m, nor a natural person.

PLEASE NOTE: If you are a party that PROVIDES the sub-contracting services, it is suggested that you make use of the agreement, titled “Sub-contracting Services Agreement- Provider“, as the latter agreement is more protective of your rights.

HOWEVER, if you are a party that RECEIVES sub-contracting services, then this is the correct agreement for you to use as it is more protective of your rights.

Please ensure that you, the smme, are permitted to sub-contract/delegate the performance of your obligations to a sub-contractor (whether in whole or in part). This is something that will be regulated in the agreement that you (the smme) have with another party in terms of which you provide services to that party. In the latter agreement the smme is the independent contractor. In this agreement the sub-contractor is the independent contractor providing the services.

NOTE: If you generally provide and receive services, we have prepared an epack that may be of use to you and the agreements provided can be tailored for the provision of any type of service. In fact this would be a perfect example of why it is advisable that a smme purchases this pack. In the above scenario, the smme would be a provider of services in one respect and a receiver of sub-contracting services in another.

This agreement:

  • is legally substantive (14 pages in total); please feel free to look at the explanatory notes below and compare the substance of this agreement to others for sale elsewhere;
  • is bordered;
  • has pages numbered;
  • is fully justified;
  • is typed up using Tahoma font, size 10;
  • has been meticulously spell-checked;
  • is extremely professional in its appearance;
  • has several drafting notes therein to guide a legal practitioner;
  • may be printed onto 14 A4 pages. (In the interests of the environment, it is suggested that the agreement rather be printed back to back on 7 pages.).

This SUB-CONTRACTOR SERVICES AGREEMENT- RECEIVER contains the following clauses:

  1. PARTIES
  2. DEFINITIONS AND INTERPRETATION
  3. RECORDAL
  4. APPOINTMENT AND RELATIONSHIP BETWEEN THE PARTIES
  5. BBBEE STATUS
  6. GOOD FAITH
  7. DURATION
  8. SERVICES
  9. INTELLECTUAL PROPERTY
  10. PAYMENT
  11. LIABILITY, INDEMNITY AND INSURANCES
  12. TERMINATION
  13. GOVERNING LAW AND JURISDICTION
  14. DISPUTE RESOLUTION
  15. CESSION AND ASSIGNMENT
  16. WARRANTIES AND UNDERTAKINGS
  17. DOMICILIUM AND NOTICES
  18. GENERAL

APPENDIX 1: DESCRIPTION OF THE SERVICES TO BE PROVIDED, FREQUENCY, SERVICE LEVELS, PENALTIES, FEES

APPENDIX 2: FORM OF CONFIDENTIALITY AGREEMENT

Please read carefully through the agreement and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding agreement.

Any constructive feedback concerning this agreement is appreciated and may be emailed to info@sitllegal.co.za.