### Question
How does the law define subcontract?


### Answer
Under *15 U.S.C. § 632*, **subcontract** is defined as:

> a legally binding agreement between a contractor that is already under contract to another party to perform work, and a third party, hereinafter referred to as the subcontractor, for the subcontractor to perform a part, or all, of the work that the contractor has undertaken

#### Citation:
  - *15 U.S.C. § 632*
  - Heading: **CHAPTER 14A-AID TO SMALL BUSINESS**

