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HOW IT WORKS
How it works
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.
Other names for this document: Broker Fee Agreement, Business Broker Agreement, Broker Contract
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