FONASBA are also publishers of the Standard Liner Agency Agreement and the General Agency Agreement (for Liner Services), both of which were revised and adopted in July 1993. The FONASBA sub-agency agreement follows the general layout of the Standard Liner agency agreement and contains clauses dealing with general terms and conditions, accounting and finance, remuneration, insurance, duration, sub-agent tasks, functions of the delegate general and finally the court. As an alternative to establishing an exhaustive list of the subcontractor`s tasks, the agreement refers to the agency agreement between the line and the general plenipotentiary and leaves it to the parties to identify the tasks covered in this document that the subcontractor must perform instead of the general plenipotentiary. Until the early 1990s, the broker offered a conventional full-service brokerage relationship under a listing agreement signed with a single vendor, creating an agency relationship with fair common law bonds in most of the United States and Canada. The seller was then a client of the real estate agent.  However, such an agency relationship did not exist with the buyer and the real estate agent`s brokers assisted the buyer (who was commonly known as a “client”). In this case, the broker/broker acted exclusively as a sub-agent of the seller`s broker for the entire period during which the buyer considered real estate, entered into a real estate contract and ultimately entered into a single one. [Citation required] This case clearly shows that members who, in the absence of a specific agreement between the captain and the general agent, act as sub-agents in the activity of the regular lines, will not be agents of the client. They would therefore have no solution against the carrier in the event of the general agent`s insolvency. However, if the carrier is to be bound, a clause should be inserted into the line agency agreement in the following directions: In summary, it would be well advised that agents authorized by their line managers to order sub-agents use the FONASBA sub-agency agreement, since it defines the responsibilities and obligations of the parties in a clear and simple document. Copies are available at the Club. The appointment of an agent who then appoints one or more sub-agents is quite frequent.
However, while it is fairly common, enforcement of commercial agents` regulations is less safe for both agents and sub-agents. The facts were as follows: E.S. Binnings (“Binnings”), an agent at the golf ports, sued the shipping company on an unpaid commission of about $500,000. The shipping company had previously hired a New York steamboat agent, F.W. Hartmann – Co. Inc. (“Hartmann”) as a general agent for regular operations in North America. Hartmann`s contract with the shipping company allowed Hartmann to appoint sub-agents to ports where Hartmann did not have an office. Hartmann appointed Binnings as Hartmann`s sub-agent for the Gulf of The United States and the ports of New Orleans and Houston. This contract between Hartmann and Binnings required both to pay a 3% commission on all cargoes shipped through New Orleans and Houston. Between 1981 and 1984, Hartmann`s financial situation deteriorated and during 1983 and 1984 Binnings accepted Hartmann`s notes for approximately $300,000 for unpaid commissions.
The Court of Appeal accepted the client. However, it is apparent from the Court of Appeal`s decision that the assertion that sub-agents could not benefit from the regulations concerns the Court of Appeal. To address this concern, the Court of Appeal held that sub-agents should be entitled to a share of what the agent received from the client as compensation (or compensation).