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A Broker Agreement is entered to engage the Broker's services to find and introduce clients interested in buying the Company's products in exchange for a commission, also known as Finder's Fee Agreement or Referral Agreement.
This is drafted in favour of the Company. It allows the Broker to indemnify the Company for any claims resulting from misrepresentation/interaction between the Broker and the Client.
The Agreement sets out the terms of the relationship between the Company and the Broker. This document comes into play when a Company is looking for potential customers to buy its products and wishes to engage the services of a Broker who specialises in that industry.
This document should be carefully read by the Company and the Broker.
The Broker Agreement is used to detail the responsibilities of the Broker and terms for payment of commission upon successful sales.
Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.