Subcontractor Approval in Contract Drafting
Nearly every form of service agreement contains a provision restricting the ability of one or both parties to subcontract their obligations, points out a post in the Tech & Sourcing blog at Morgan Lewis.
But authors Doneld G. Shelkey and Valerie A. Gross offer a caution: “These limitations are often included as a standard part of the legal boilerplate without much thought, but can present significant problems, especially given the broad use and incorporation of third-party technologies and services.”
In their post, they discuss use of a subcontracting principle called a “material subcontractor” provision.
