What is Subcontract?

Legal Definition
A contract subordinate to another contract, made or intended to be made between the contracting parties, on, one part, or some of them, and a stranger. 1 H. Bl. 37, 45. Where a person has contracted for the performance of certain work, (e. g., to build a house,) and he in turn engages a third party to perform the whole or a part of that which is included in the original contract, (e. g., to do the carpenter work,) his agreement with such third person is called a "subcontract," and such person is called a "subcontractor." Central Trust Co. v. Railroad Co. (C. C.) 54 Fed. 723; Lester V. Houston. 10i N. C. 605, 8 S. E. 366.
-- Black's Law Dictionary