Broker clause: Copy, customize, and use instantly
Introduction
A broker clause outlines the terms under which a broker is engaged to facilitate a transaction or provide services in exchange for a commission or fee. This clause ensures clarity on the broker’s role, responsibilities, and compensation, as well as how disputes or disagreements related to the broker’s actions will be handled. It is commonly used in agreements involving sales, investments, and commercial transactions.
Below are templates for broker clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard broker clause
This variation applies when a broker is involved in the transaction.
The Broker, [Broker's Name], is engaged to facilitate the transaction between [Party A] and [Party B]. The Broker will receive a commission of [percentage or amount] of the total transaction value, payable upon the completion of the transaction. The Broker shall have no authority to make binding decisions on behalf of either party.
Commission-based broker clause
This variation applies when the broker is compensated based on commission.
The Broker shall be entitled to a commission of [percentage or amount] of the total value of the transaction, payable upon the successful completion of the deal. If the transaction does not proceed to completion due to no fault of the Broker, the Broker will not be entitled to any commission or compensation.
Exclusive broker clause
This variation applies when the broker has exclusive rights.
The Broker is granted exclusive rights to facilitate the transaction between [Party A] and [Party B] for the duration of this Agreement. The Broker shall receive a commission of [percentage or amount] of the total transaction value, payable upon completion. If [Party A] or [Party B] engages another broker during this period, they will be responsible for any commissions due to the original Broker.
Non-exclusive broker clause
This variation applies when the broker's rights are non-exclusive.
The Broker is engaged on a non-exclusive basis to assist in the transaction between [Party A] and [Party B]. The Broker shall be entitled to a commission of [percentage or amount] of the total transaction value only if the Broker’s efforts directly result in the completion of the transaction.
Broker liability clause
This variation applies to a broker’s liability.
The Broker shall not be liable for any loss, damage, or delay arising from the transaction, except for acts of gross negligence or willful misconduct. The Broker’s liability under this Agreement shall be limited to the amount of commission earned in connection with the transaction.
Broker representation clause
This variation applies when the broker makes representations about the transaction.
The Broker represents that they are licensed and qualified to perform brokerage services in [jurisdiction]. The Broker further represents that they will act in good faith and in the best interest of [Party A] and [Party B], disclosing any conflicts of interest that may arise during the course of the transaction.
Broker payment terms clause
This variation applies to the terms under which the broker is paid.
The Broker will receive a commission of [percentage or amount] of the transaction value, payable upon the successful closing of the deal. If the transaction is canceled or delayed due to no fault of the Broker, payment shall be made based on the progress of the transaction up until the cancellation or delay.
Broker engagement clause
This variation applies to the broker’s engagement for specific tasks.
The Broker is engaged to provide services in connection with [specific transaction, e.g., the sale of a property, the acquisition of shares, etc.]. The Broker’s services will include identifying potential buyers or sellers, negotiating terms, and assisting in the finalization of the transaction. The Broker will not be responsible for the actual execution or delivery of the transaction.
Broker commission disputes clause
This variation applies when there is a provision for disputes over broker commission.
In the event of a dispute regarding the commission due to the Broker, both Parties agree to attempt to resolve the dispute amicably through negotiation. If the dispute cannot be resolved, the Parties agree to submit the matter to binding arbitration under the rules of [arbitration body], and the commission will be determined by the arbitrator’s decision.
Broker termination clause
This variation applies to the termination of the broker agreement.
This Agreement may be terminated by either Party with [number of days, e.g., 30 days] written notice to the other Party. Upon termination, the Broker shall be entitled to a commission for any transactions initiated during the term of this Agreement that are completed within [time frame, e.g., 6 months] following termination.
Broker compensation clause
This variation applies to broker compensation.
The Broker will receive a commission of [percentage or amount] of the total transaction value upon the successful completion of the transaction. If the transaction is completed in phases, the Broker will receive commission based on the value of each phase completed.
Broker role in negotiations clause
This variation applies to the Broker’s role in negotiations.
The Broker is responsible for negotiating the terms of the transaction between [Party A] and [Party B]. The Broker’s efforts must be aimed at securing the best possible terms for both parties. However, the final decision regarding the terms of the transaction remains with [Party A] and [Party B].
Broker confidentiality clause
This variation applies to the confidentiality of the Broker’s role.
The Broker agrees to maintain the confidentiality of all information related to the transaction, including but not limited to pricing, terms, and other sensitive data. This obligation shall survive the termination of the Agreement and continue indefinitely unless otherwise agreed in writing by both Parties.
Broker referral clause
This variation applies to broker referrals.
The Broker may refer potential buyers, sellers, or investors to [Party A] or [Party B] as part of the transaction process. The Broker will receive a commission of [percentage or amount] if the referred party enters into an agreement with [Party A] or [Party B] as a result of the referral.
Broker exclusivity and non-circumvention clause
This variation applies to broker exclusivity and non-circumvention.
During the term of this Agreement, neither [Party A] nor [Party B] shall engage another broker or negotiate directly with each other to circumvent the Broker. If a deal is completed without the Broker’s involvement, the Broker shall be entitled to [percentage] of the transaction value as if they had facilitated the transaction.
Broker expenses clause
This variation applies to expenses incurred by the Broker.
The Broker will be responsible for all costs and expenses incurred during the execution of their services under this Agreement, including travel, communication, and research costs, unless otherwise agreed upon in writing by [Party A] or [Party B].
Broker termination for cause clause
This variation applies when the broker agreement can be terminated for cause.
Either Party may terminate this Agreement immediately for cause if the Broker fails to perform their obligations under this Agreement, including but not limited to unethical conduct, misrepresentation, or failure to secure the intended transaction.
Broker services clause
This variation applies to the specific services the broker will provide.
The Broker agrees to provide the following services as part of their role in facilitating the transaction: identifying potential buyers/sellers, negotiating terms, and coordinating with legal and financial advisors to finalize the deal. The Broker is not responsible for the execution of the transaction itself unless otherwise specified.
Broker rights to representation clause
This variation applies to the Broker’s rights to represent both parties.
The Broker has the right to represent both Parties in this transaction, with the understanding that the Broker will remain impartial and act in the best interest of both [Party A] and [Party B]. The Broker will disclose any potential conflicts of interest prior to engaging in any negotiations.
Broker indemnification clause
This variation applies when the Broker is indemnified.
The Broker shall be indemnified and held harmless by [Party A] and [Party B] from any claims, damages, or losses arising out of the Broker’s performance under this Agreement, except in cases of fraud, gross negligence, or willful misconduct by the Broker.
Broker commission payment clause
This variation applies to when the broker’s commission is paid.
The Broker will receive a commission of [percentage or amount] of the total transaction value, payable upon the successful completion of the transaction. If the transaction is completed in installments, the Broker’s commission will be paid in proportion to the value of each installment received.
Broker involvement in due diligence clause
This variation applies to the broker’s role in due diligence.
The Broker agrees to assist [Party A] and [Party B] in the due diligence process by providing necessary information, introducing experts, and facilitating discussions. The Broker’s services will include reviewing financials, operations, and any relevant background checks necessary to complete the transaction.
Broker dispute resolution clause
This variation applies to resolving disputes involving the broker.
In the event of a dispute arising between the Broker and [Party A] or [Party B] regarding compensation or performance under this Agreement, the Parties agree to first attempt mediation. If mediation fails, the dispute will be resolved through binding arbitration in accordance with the rules of [arbitration body].
Broker exclusivity termination clause
This variation applies to the termination of the exclusive broker arrangement.
If either [Party A] or [Party B] wishes to terminate the exclusivity of the Broker, written notice must be given [number of days, e.g., 30 days] prior to the termination date. Upon termination, the Broker will be entitled to a commission on any transaction finalized within [time frame, e.g., 6 months] of termination as long as the transaction is based on leads or negotiations initiated during the exclusivity period.
Broker rights to disclose information clause
This variation applies to the Broker’s right to disclose information.
The Broker shall have the right to disclose information related to the transaction to third parties, including potential buyers or investors, as long as the information is necessary to facilitate the transaction and is done in accordance with the confidentiality provisions of this Agreement.
Broker commission for referral clause
This variation applies when a broker is paid a commission for referrals.
The Broker will receive a referral commission of [percentage or amount] if a referral made by the Broker results in a completed transaction. The referral must be made in writing and acknowledged by [Party A] or [Party B] before the referral commission is payable.
Broker representation in multiple transactions clause
This variation applies when a broker represents in multiple transactions.
The Broker may represent [Party A] in multiple transactions, provided that each transaction is separately agreed upon in writing. The Broker’s commission for each transaction will be based on the terms agreed in each individual contract.
Broker compensation for terminated transactions clause
This variation applies when a broker receives compensation even if the transaction is terminated.
If the transaction is terminated for any reason other than a breach of this Agreement by the Broker, the Broker will be entitled to compensation for work completed up to the point of termination. This compensation will be calculated based on the Broker’s standard commission rate and the stage of the transaction at the time of termination.
Broker conflict of interest clause
This variation applies to conflicts of interest.
The Broker agrees to disclose any potential conflict of interest that may arise during the course of this Agreement. If a conflict of interest arises, the Broker will inform both Parties in writing and seek approval to continue with the transaction or seek alternative arrangements for representation.
Broker termination for non-performance clause
This variation applies to terminating the Broker for non-performance.
Either Party may terminate this Agreement if the Broker fails to meet the expectations and responsibilities outlined in this Agreement, including failure to secure a transaction or fulfill contractual obligations. Termination for non-performance requires [number of days, e.g., 15 days] written notice.
Broker commission upon successful introduction clause
This variation applies to when a broker receives a commission after introducing a party.
The Broker will receive a commission of [percentage or amount] of the transaction value upon the successful introduction of a buyer, seller, or investor who proceeds to complete the transaction. The commission is due when the transaction is finalized, regardless of whether the Broker facilitated the entire deal or just the introduction.
Broker commission for partial transactions clause
This variation applies to when the broker receives commission for partial transactions.
The Broker will be entitled to a commission of [percentage or amount] on any partial transaction or phased transaction that occurs during the course of the Agreement. If the full transaction is not completed, the Broker will still be compensated based on the value of completed phases or segments.
Broker non-competition clause
This variation applies to non-competition terms for the Broker.
The Broker agrees not to directly or indirectly engage in any activity that competes with [Party A] or [Party B] for the duration of this Agreement and for [number of months/years] following its termination. This restriction applies to brokering similar transactions within [specific geographical area or industry].
Broker non-disclosure clause
This variation applies to the non-disclosure obligations of the Broker.
The Broker agrees to keep all confidential information obtained during the course of this transaction confidential. This includes, but is not limited to, pricing, terms, trade secrets, and any proprietary information disclosed by [Party A] or [Party B]. The obligation of confidentiality will remain in effect for [specified period of time] after the termination of this Agreement.
Broker right to sub-broker clause
This variation applies when the Broker is allowed to use sub-brokers.
The Broker may engage a sub-broker or assistant to assist in the execution of this Agreement, provided that the Broker retains full responsibility for the actions and obligations of the sub-broker. Any commission paid to a sub-broker will be deducted from the Broker’s commission, and the Broker will be responsible for paying the sub-broker.
Broker commission for future transactions clause
This variation applies to the Broker’s commission on future transactions.
If a transaction is completed with a party introduced by the Broker, and additional deals are subsequently negotiated within [time period, e.g., 6 months] of the original transaction, the Broker will be entitled to a commission for each future transaction related to the original deal, based on the same terms.
Broker payment terms clause
This variation applies to the terms of payment for the Broker’s commission.
The Broker’s commission of [percentage or amount] will be paid within [number of days, e.g., 30 days] of the successful completion of the transaction. Payments will be made directly to the Broker, unless otherwise agreed upon in writing.
Broker exclusivity rights clause
This variation applies when the Broker has exclusive rights to represent one party.
The Broker shall have exclusive rights to represent [Party A] in the transaction specified in this Agreement. [Party A] agrees not to engage another broker for the same transaction during the term of this Agreement. The Broker’s exclusive rights shall continue until the transaction is completed or the Agreement is terminated.
Broker obligation to report clause
This variation applies to the Broker’s reporting obligations.
The Broker is required to provide [Party A] and [Party B] with regular updates on the progress of the transaction, including any potential buyers, sellers, or investors. Reports must be provided at least [time frame, e.g., monthly] and include all relevant information regarding the status of negotiations and potential deals.
Broker involvement in post-deal services clause
This variation applies to the Broker’s involvement after the transaction.
The Broker may be engaged to assist in post-deal services, including [list of services, e.g., follow-up on deliverables, dispute resolution, implementation support], at the request of either Party. Compensation for post-deal services will be agreed upon in writing before the services are provided.
Broker commission for sale of assets clause
This variation applies to the broker's commission on asset sales.
The Broker will receive a commission of [percentage or amount] for the successful sale of assets described in this Agreement. The commission will be payable upon the closing of the sale and transfer of ownership, regardless of whether the Broker is directly involved in the negotiation of the sale terms.
Broker’s disclosure of interest clause
This variation applies to the broker’s obligation to disclose any interest in the transaction.
The Broker agrees to disclose to [Party A] and [Party B] any personal or financial interest they may have in the transaction, including ownership or a financial stake in the involved parties. The Broker must disclose any potential conflict of interest prior to engaging in any negotiations.
Broker exclusivity termination rights clause
This variation applies when exclusivity can be terminated under certain conditions.
Either Party may terminate the Broker’s exclusivity under this Agreement with [number of days, e.g., 30 days] written notice if the Broker fails to perform according to the terms outlined, including not securing a potential buyer or seller after [time period, e.g., 6 months]. Upon termination, the Broker will remain entitled to commission for any transactions initiated during the exclusivity period.
Broker commission for referrals outside of the agreement clause
This variation applies to broker referrals outside of the primary agreement.
If the Broker refers a party to [Party A] or [Party B] outside of this Agreement, and a transaction is completed, the Broker shall be entitled to a commission of [percentage or amount] for that referral. The referral must be made in writing and acknowledged by [Party A] or [Party B] before the commission is payable.
Broker’s duty to act in good faith clause
This variation applies to the broker’s duty to act in good faith.
The Broker agrees to act in good faith and exercise due diligence in the facilitation of the transaction. The Broker shall not engage in activities that could potentially harm or disadvantage any Party involved in the transaction, including misrepresentation or withholding of important information.
Broker commission for multiple transactions clause
This variation applies to broker commission for multiple transactions.
The Broker will be entitled to a commission of [percentage or amount] for each transaction facilitated with [Party A] or [Party B] that results in a completed deal, even if the transaction is broken into multiple phases or components. The commission will be paid after each phase is completed and payment is received.
Broker termination for breach clause
This variation applies when the broker can be terminated for breach of the agreement.
The Broker may be terminated for cause if they breach any material term of this Agreement, including failure to act in a timely manner, non-disclosure of conflicts of interest, or failure to secure a deal as stipulated. In the event of termination for breach, the Broker shall not be entitled to any further commissions, and any earned commission will be adjusted accordingly.
Broker’s right to marketing clause
This variation applies to the Broker’s right to engage in marketing activities.
The Broker is authorized to engage in marketing activities, including but not limited to advertisements, promotions, and outreach to potential buyers or sellers, to facilitate the transaction. The cost of marketing activities is to be covered by [Party A] or [Party B], as agreed upon in writing.
Broker confidentiality in post-transaction clause
This variation applies to the broker’s confidentiality obligations after the transaction.
The Broker agrees to maintain confidentiality regarding all terms of the transaction and any proprietary information learned during the negotiation and execution of the deal. This obligation of confidentiality will extend beyond the termination of this Agreement and remain in effect indefinitely unless explicitly waived in writing by both Parties.
Broker commission payment schedule clause
This variation applies to the schedule of broker commission payments.
The Broker’s commission of [percentage or amount] will be paid according to the following schedule:First payment: [amount] upon signing of the agreementSecond payment: [amount] upon completion of a certain milestone or transaction phaseFinal payment: [amount] upon finalization of the transaction and receipt of the total transaction value
Broker commission on extended contract renewals clause
This variation applies when the broker is entitled to a commission on contract renewals.
The Broker will receive a commission of [percentage or amount] on any contract renewal that occurs within [time period, e.g., 12 months] after the initial transaction, if the renewal is directly related to the Broker’s introduction of the parties involved. This commission will be due upon execution of the renewal agreement.
Broker’s right to receive commission after termination clause
This variation applies when the broker is entitled to commission after the termination of the agreement.
The Broker shall be entitled to receive a commission for any transaction finalized within [time frame, e.g., 6 months] following the termination of this Agreement, provided that the transaction was initiated during the term of the Agreement and was a direct result of the Broker’s efforts.
Broker compensation for successful negotiations clause
This variation applies when the broker is compensated for successful negotiations.
The Broker will receive a commission of [percentage or amount] based on the total value of the transaction once the terms are successfully negotiated and agreed upon by both [Party A] and [Party B]. Payment will be due immediately after the execution of the final agreement.
Broker responsibility for document preparation clause
This variation applies when the broker is responsible for preparing documents.
The Broker is responsible for preparing all necessary documents related to the transaction, including [list of documents, e.g., agreements, terms of sale, contracts]. The Broker will ensure all documents comply with relevant regulations and will charge an additional fee of [amount] for this service, which will be included in the overall commission.
Broker responsibility for presenting offers clause
This variation applies when the broker is responsible for presenting offers.
The Broker is responsible for presenting offers from prospective buyers or sellers to [Party A] and [Party B]. The Broker will immediately notify both Parties of any offers received and will assist in evaluating these offers to ensure the transaction proceeds smoothly.
Broker indemnification clause
This variation applies to indemnifying the broker for certain liabilities.
[Party A] and [Party B] agree to indemnify and hold harmless the Broker from any claims, damages, or liabilities arising from the Broker’s actions under this Agreement, except in cases of fraud, gross negligence, or willful misconduct. This indemnification includes all legal costs incurred by the Broker in defense of any such claims.
Broker commission for successful sale or purchase clause
This variation applies to broker commissions upon sale or purchase completion.
The Broker shall receive a commission of [percentage or amount] of the total sale or purchase price upon the successful completion of the transaction. The commission will be paid in full once both Parties have executed the final agreement and payment has been made.
Broker’s exclusivity termination clause due to breach clause
This variation applies to termination of exclusivity in case of breach.
If [Party A] or [Party B] breaches any terms of this Agreement, the exclusivity of the Broker may be terminated immediately by the non-breaching Party. In such cases, the Broker will be entitled to commission for any transactions completed prior to termination but will not be entitled to further commissions on any future deals.
Broker right to engage third-party agents clause
This variation applies when the broker can engage third-party agents.
The Broker has the right to engage third-party agents or assistants to assist in fulfilling their obligations under this Agreement, provided that the Broker remains fully responsible for the actions of such agents. Any commission earned by third-party agents will be deducted from the Broker’s commission.
Broker’s role in facilitating dispute resolution clause
This variation applies when the broker plays a role in dispute resolution.
The Broker will assist [Party A] and [Party B] in resolving any disputes that arise during the transaction process, including facilitating communications and negotiations. The Broker is not responsible for making final decisions but will assist in reaching a mutually agreeable solution.
Broker fee for multiple deals clause
This variation applies when the broker is involved in multiple deals.
The Broker will receive a commission of [percentage or amount] on each individual deal that is part of this Agreement, even if there are multiple deals or phases involved. The commission for each deal will be paid upon the successful completion and finalization of the respective deal.
Broker entitlement to commission for successful transactions clause
This variation applies when the broker is entitled to commission for successful transactions.
The Broker will be entitled to a commission of [percentage or amount] on any transaction that results from the Broker’s introduction, regardless of the timing or structure of the transaction, provided that the deal is finalized within [time period, e.g., 6 months] of the introduction.
Broker commission for non-cash transactions clause
This variation applies to broker commissions for non-cash transactions.
The Broker will receive a commission of [percentage or amount] based on the total value of the transaction, even if the transaction is not a cash transaction. If the transaction is paid in goods, services, or other non-cash equivalents, the value of the transaction will be based on the fair market value of the exchanged goods or services at the time the transaction is completed.
Broker responsibilities for providing documentation clause
This variation applies to the broker’s responsibility for providing documentation.
The Broker is responsible for providing all necessary documentation related to the transaction, including but not limited to [documents, e.g., contracts, purchase orders, statements]. The Broker will ensure all documents are accurate, and any errors in documentation will be corrected at the Broker’s expense.
Broker commission on installment-based transactions clause
This variation applies to broker commissions on installment payments.
The Broker will receive a commission of [percentage or amount] based on the total value of the transaction. For installment-based transactions, the Broker’s commission will be paid in installments, proportional to the payments made by [Party A] or [Party B] under the terms of the transaction.
Broker entitlement to commission on subsequent deals clause
This variation applies to broker commission on subsequent deals.
The Broker will be entitled to a commission for any subsequent deals resulting from the initial transaction, provided that the deals are directly linked to the Broker’s introduction. The commission will be based on the value of each subsequent deal and paid upon its completion.
Broker commission on equity transactions clause
This variation applies to broker commissions on equity-related transactions.
The Broker shall be entitled to a commission of [percentage or amount] on any equity-based transaction, such as stock sales or equity investments, completed as part of this Agreement. The commission will be calculated based on the transaction’s equity value at the time of completion.
Broker’s role in assisting with financing clause
This variation applies when the broker assists with financing.
The Broker will assist [Party A] and [Party B] in securing financing for the transaction. The Broker will receive a commission of [percentage or amount] on the financing secured, payable upon the disbursement of funds related to the financing.
Broker compensation for managing negotiations clause
This variation applies when the broker is responsible for managing negotiations.
The Broker will receive a commission of [percentage or amount] for managing negotiations between the parties involved in the transaction. The commission will be based on the agreed transaction value and is due upon the successful closure of the deal.
Broker's liability for disclosure of information clause
This variation applies to the Broker’s liability for disclosures.
The Broker is liable for any failure to disclose relevant information that would affect the transaction. If the Broker fails to provide accurate or full disclosure to [Party A] or [Party B], they will be responsible for any damages or losses incurred as a result of this omission.
Broker fee for completed introductions clause
This variation applies when the broker is paid a fee for a completed introduction.
The Broker will be entitled to a fee of [percentage or amount] upon the successful completion of the transaction resulting from their introduction of [buyer, seller, investor]. This fee will be due once the transaction is finalized, and the Broker’s introduction is directly credited as the reason for the deal’s success.
Broker commission for service referrals clause
This variation applies to broker commissions for service referrals.
The Broker will receive a commission of [percentage or amount] for any service referrals made to [Party A] or [Party B]. The commission is payable upon the successful completion of services provided by the referred service provider, and the Broker’s role in the referral is credited as the reason for the engagement.
Broker commission for long-term deals clause
This variation applies when the broker earns a commission for long-term deals.
The Broker will receive a commission of [percentage or amount] on any long-term deal that spans [number of months or years], with payments made in installments based on milestones or contractual payments received. The Broker’s commission will be tied to the ongoing value of the deal throughout its duration.
Broker confidentiality of client information clause
This variation applies to the confidentiality of client information.
The Broker agrees to keep all confidential information about [Party A] and [Party B], including business strategies, financial details, and personal information, confidential throughout the term of this Agreement and after its termination. This confidentiality obligation will last for [specified period, e.g., 5 years].
Broker commission on multi-party transactions clause
This variation applies when the broker is involved in multi-party transactions.
The Broker will receive a commission of [percentage or amount] on the total transaction value in a multi-party deal involving [Party A], [Party B], and [Party C]. The commission will be divided proportionally between the Parties involved based on the value contributed by each, with payments due upon successful completion of the deal.
Broker commission on cross-border transactions clause
This variation applies when the broker is involved in cross-border transactions.
The Broker will receive a commission of [percentage or amount] on any cross-border transaction facilitated between [Party A] and [Party B]. The commission will be calculated based on the value of the transaction, including any applicable international taxes or duties, and payable once the transaction is completed.
Broker performance evaluation clause
This variation applies when the broker’s performance is evaluated.
The Broker’s performance will be evaluated on a [quarterly/annual] basis to determine the effectiveness of their efforts in securing deals, achieving targets, and maintaining relationships with clients. The Broker will be eligible for an additional performance bonus based on the evaluation results, at the discretion of [Party A] or [Party B].
Broker commission for renewals and extensions clause
This variation applies when the broker is entitled to commission for contract renewals or extensions.
The Broker will receive a commission of [percentage or amount] on any renewal or extension of an agreement facilitated through their introduction or negotiations. This commission will be payable upon the execution of the renewal or extension agreement.
Broker responsibility for due diligence clause
This variation applies when the broker is responsible for due diligence.
The Broker will be responsible for conducting due diligence, including background checks, financial reviews, and other necessary verifications related to [Party A] and [Party B]. Any costs incurred during this process will be covered by [Party A] or [Party B], and the Broker will be compensated for their due diligence efforts as part of the overall commission.
Broker commission on contingent deals clause
This variation applies when the broker is paid based on a contingent deal.
The Broker’s commission of [percentage or amount] will be contingent upon the successful closure of the deal between [Party A] and [Party B]. If the deal does not close for any reason, the Broker will not be entitled to any commission, unless otherwise specified in this Agreement.
Broker’s role in closing the deal clause
This variation applies when the broker’s responsibility includes closing the deal.
The Broker will be responsible for facilitating all aspects of the deal, including negotiations, documentation, and final closure. The Broker will receive a commission of [percentage or amount] once the deal is successfully closed, and all conditions are satisfied by [Party A] and [Party B].
Broker commission for introduction to investors clause
This variation applies when the broker introduces investors.
The Broker will receive a commission of [percentage or amount] for any investment secured through their introduction of an investor to [Party A] or [Party B]. The commission will be based on the total investment amount, and payment will be made upon receipt of funds.
Broker’s responsibility for coordinating meetings clause
This variation applies when the broker coordinates meetings.
The Broker will coordinate all meetings between [Party A] and [Party B], arranging schedules, locations, and the agenda for discussions. The Broker will be compensated for this service as part of their commission, payable once the transaction is finalized.
Broker entitlement for early-stage commissions clause
This variation applies when the broker is entitled to early-stage commissions.
The Broker will be entitled to a commission of [percentage or amount] on any initial stage of the transaction that results in a signed agreement or memorandum of understanding (MOU) between the Parties. The commission will be payable at the completion of the initial stage, even if the final transaction is not concluded.
Broker liability for financial accuracy clause
This variation applies when the broker is liable for financial accuracy.
The Broker is responsible for ensuring that all financial information presented during the course of the transaction is accurate and up-to-date. The Broker will be liable for any discrepancies or errors in the financial documents that result in a loss or dispute between [Party A] and [Party B].
Broker commission for bulk transactions clause
This variation applies when the broker handles bulk transactions.
The Broker will receive a commission of [percentage or amount] for any bulk transactions completed as part of this Agreement, including [specify types of bulk transactions, e.g., large-scale sales, large contracts]. The commission will be calculated based on the total value of all items included in the bulk transaction and paid upon completion.
Broker referral to other professionals clause
This variation applies when the broker refers to other professionals.
The Broker may refer [Party A] or [Party B] to other professionals, such as attorneys, accountants, or consultants, in connection with the transaction. If any referrals lead to successful business engagements, the Broker will be entitled to a referral fee of [percentage or amount] for each professional service contract entered into.
Broker commission for selling intellectual property clause
This variation applies when the broker handles the sale of intellectual property.
The Broker will receive a commission of [percentage or amount] for the successful sale or licensing of intellectual property owned by [Party A]. This commission will be payable upon the final sale or execution of a licensing agreement, based on the total amount received by [Party A].
Broker’s duty to provide regular progress reports clause
This variation applies when the broker is required to provide regular progress updates.
The Broker will provide [Party A] and [Party B] with monthly progress reports detailing the status of negotiations, any offers received, and potential leads. These reports will be provided in writing and are essential for tracking the Broker’s efforts in securing the transaction.
Broker's responsibility to comply with regulations clause
This variation applies to the broker’s responsibility for regulatory compliance.
The Broker is responsible for ensuring that all aspects of the transaction comply with applicable laws, regulations, and industry standards. The Broker will promptly notify [Party A] and [Party B] of any regulatory requirements or updates that may affect the transaction process.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.