What does affiliate mean in a contract?

An affiliate is typically defined in a finance loan agreement and means another entity, other than a subsidiary, that is directly or indirectly in control of or under the power of a different entity. Contracts often list and define affiliates in licensing agreements when granting a license to one of those entities.

Is a contractor considered an affiliate?

Affiliates as Independent Contractors An affiliate is usually not part of the company with whom it affiliates. It’s a separate company, an independent contractor. While another a company may affiliate through ownership, that ownership doesn’t mean total control.

What is the difference between affiliate and subsidiary?

A subsidiary is a company whose parent company is a majority shareholder that owns more than 50% of all the subsidiary company’s shares. Affiliate is used to describe a company with a parent company that only possesses a minority stake in the ownership of the affiliate.

Is a parent an affiliate?

For example, executive officers, directors, large stockholders, subsidiaries, parent entities, and sister companies are affiliates of other companies. Two entities may be affiliates if one owns less than a majority of voting stock in the other.

Who is considered an affiliate?

An affiliate is a company in which a minority stake is held by a larger company. In retail, one company becomes affiliated with another to sell its products or services for a fee. Affiliate relationships exist in many different types of configurations across all sorts of industries.

What is the difference between an affiliate and a subsidiary?

How do you determine if a company is an affiliate?

Companies are affiliated when one company is a minority shareholder of another. In most cases, the parent company will own less than a 50% interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third party.

What is an affiliate contract?

Affiliate Contract means any contract between the Company or any Subsidiary of the Company, on the one hand, and a Member or an Affiliate of a Member, on the other hand.

What is the meaning of affiliate?

The term affiliate is used to describe the relationship between two entities wherein one owns less than a majority stake in the other’s stock. Affiliations can also describe a type of relationship in which at least two different companies are subsidiaries of a larger parent company.

What is an affiliate agreement?

Affiliate Agreement. Definition – What does Affiliate Agreement mean? An affiliate agreement refers to the terms of services between an advertiser and an affiliate (generally a publisher or website) that oversee and define the affiliate relationship.

What is an affiliate agreement in the business world?

An affiliate agreement is a contract between the two parties: the host or offering business and the affiliate. Like any other type of contract or agreement, it’s important to put this affiliate agreement in writing.