Third Party Management Agreement Template for South Africa

The Third Party Management Agreement is essential for businesses operating in South Africa that wish to delegate management responsibilities to specialized external providers. This agreement type is commonly used when companies need professional management services for specific operations, assets, or business functions while maintaining strategic control. The document addresses key aspects of South African business law, including Companies Act compliance, POPIA requirements, and where relevant, B-BBEE considerations. It typically includes detailed service specifications, performance metrics, fee structures, and compliance obligations. This agreement is particularly relevant in contexts where specialized expertise is required or where businesses seek to optimize operations through professional management services while ensuring regulatory compliance and risk management.

1. Parties: Identification and details of the contracting parties - the principal company and the third party manager

2. Background: Context of the agreement, business relationship, and purpose of the management arrangement

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

4. Appointment and Scope: Formal appointment of the manager and detailed scope of management services

5. Duration and Term: Period of the agreement, including commencement date and renewal terms

6. Manager's Obligations: Detailed responsibilities, duties, and performance standards of the third party manager

7. Principal's Obligations: Responsibilities and obligations of the principal company

8. Fees and Payment Terms: Management fees, payment structure, and related financial terms

9. Performance Monitoring: KPIs, reporting requirements, and performance evaluation mechanisms

10. Compliance and Regulatory Requirements: Obligations regarding applicable laws, regulations, and industry standards

11. Confidentiality: Protection and handling of confidential information

12. Data Protection: POPIA compliance and data handling requirements

13. Intellectual Property: Ownership and usage rights of IP in the management relationship

14. Liability and Indemnification: Liability limitations, indemnities, and risk allocation

15. Termination: Termination grounds, procedures, and consequences

16. Post-Termination Obligations: Obligations surviving termination and handover requirements

17. General Provisions: Standard legal provisions including notices, amendments, governing law