OTHER NAMESBroker Fee AgreementBusiness Broker AgreementBroker Contract
What is a Broker Agreement?
You've decided to hire a broker to help set up and finalize a business deal. Or maybe you're the broker, yourself. Either way, creating a Broker Agreement can help protect your rights and obligations. By outlining the terms and conditions of the arrangement, you'll ensure that both sides are on the same page, which means you can focus on closing the perfect deal.
With a Broker Agreement, you (either a broker or client) can set forth the terms and conditions of the broker's payment for his or her services. In this case, a broker is someone with knowledge and contacts in a certain field, who can facilitate the connection of one business or individual with another. Whichever party you represent, a Broker Agreement allows you to specify how much the broker will be paid for an introduction or a successful final deal. You'll want to include details like: the broker's name; who's requesting the broker's services; whether the broker will be finding goods or services; whether the broker will be making introductions, or be involved in the details of the transaction; whether the broker has the licenses and certifications required by the intended industry; the duration of the agreement; any exclusivity or non-circumvention clauses; whether payment depends on the transaction's success; and how the broker's fee will be determined and paid.
When to use a Broker Agreement:
You have knowledge and contacts in a certain field and want to introduce a buyer and a seller of a good or service, or an employer and potential employees, to each other for a fee.
You have a good or service but while running your business cannot reach out to find clients or customers yourself so would like to pay a broker to connect you with clients or customers.
You want to purchase a certain good or service but do not know where to look or who to speak with, so want to pay a broker to find you that good or service.
Note: The Broker Agreement should not be confused with the Finder's Fee Agreement, which allows business owners to contract with another party to find potential clients and investors for their business for a fee.
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Sample Broker Agreement
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This Broker Agreement (hereinafter the "Agreement") is made on (the "Effective Date"), by and between of , , of , , (hereinafter referred to as "Buyer""Seller") and of , , (hereinafter referred to as "Broker").
WHEREAS, Buyer Seller desires to purchase sell certain goods;services;
WHEREAS, Broker has contacts within the industry and desires to act as an intermediary finder of goods services for Buyer;WHEREAS, Broker has contacts within the industry and desires to act as an intermediary finder of buyers for Seller's goods; services;
NOW, THEREFORE, in consideration of the premise and the mutual promises and covenants contained herein, the parties agree as follows:
. LEGAL COMPLIANCE.
As required by the industry, Broker shall comply with all applicable laws and has obtained the necessary licenses.Licensing and/or certification is required by the industry and Broker does not hold such licensing and/or certification.Broker certifies that no certification or licensure is required by the industry.
. TERM AND TERMINATION.
The term of this Agreement shall commence on the Effective Date and shall continue in full force and effect for a period of days from the date of this Agreement (the "Term"), unless earlier until terminated by either party upon at least days' prior written notice.
For the term of this Agreement, Broker shall have the non-exclusive exclusive right to introduce prospective buyers sellers to the Buyer Seller who are not already known to the Buyer.Seller.
. FEES AND PAYMENT.
Upon determination of broker fees due, the Broker shall issue an invoice to the Buyer Seller and payment shall be due net thirty (30) days from the date of the invoice.
Acceptable forms of payment include the following:
. FINAL AGREEMENT.
This Agreement represents the entire agreement with respect to the subject matter hereof and terminates and supersedes all prior understandings or agreements with respect to such matters. This Agreement may be amended only in writing signed by both parties.
. LEGAL CONSTRUCTION.
In the event any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability shall not affect any other provisions. This Agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in it.
. GOVERNING LAW.
This Agreement shall be governed by the laws of the , without giving effect to principles of conflicts of law.
This Agreement shall be signed on behalf of by , and on behalf of by , .
Final Checklist for General Broker Agreement
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Next Steps: Make It Legal
Look over the Broker Agreement to ensure it matches your intentions. If you need to make changes to the Agreement outside of the interview, you will be able to make changes online or in Word format in the Document Manager at the end of the process.
You can also use Rocket Lawyer's e-signature service to electronically have each party sign the document. Or, have both Parties sign and date duplicate hard copies of the Broker Agreement.
Deliver a copy of the Broker Agreement to the other Party.
Keep a copy of all documents for your own records and in case there is a problem.
Each Party should receive an original signed copy of the Broker Agreement. Your copy should be kept in a safe place. If you signed a paper copy of your document, you can use Rocket Lawyer to store and share it. Safe and secure in your Rocket Lawyer account, you can access it any time from any computer, as well as share it for future reference.
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