| Commentary

8.1 Use of ‘affiliate’

| Commentary

8: AFFILIATES, GROUP COMPANIES AND SUBSIDIARIES

(For precedents of affiliates, group companies and subsidiaries clauses see Form 8.1 [1142] onwards.)

8.1 Use of ‘affiliate’

The term ‘affiliate’ is normally used to refer to individuals or companies that are connected or associated with a party to an agreement. There is no universal meaning of the term, and if used in an agreement, the parties should define it.

A definition of affiliates often (although not always) means other companies in the same group of companies as a contracting party. The definition may make use of statutory definitions—for example, that of ‘subsidiary’ set out in the

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