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Broker Commission Agreement

Broker Commission Agreement Template for Netherlands

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Key Requirements PROMPT example:

Broker Commission Agreement

"I need a Broker Commission Agreement under Dutch law for a real estate agency operating in Amsterdam, with a 5% commission structure and exclusive territory rights, to be effective from March 1, 2025."

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Document background
The Broker Commission Agreement is a vital commercial contract used when a company (principal) wishes to engage an intermediary (broker) to facilitate business transactions or sales in exchange for commission-based compensation. This agreement is particularly important in the Dutch business context, where it must comply with specific provisions of the Dutch Civil Code (Burgerlijk Wetboek) regarding commercial agency and intermediary services. The document typically includes detailed sections on commission calculations, payment terms, territorial restrictions, and regulatory compliance requirements. It's essential for businesses operating in regulated sectors such as financial services, where additional Dutch regulatory requirements may apply. The agreement provides legal protection for both parties by clearly defining their rights, obligations, and the terms of their commercial relationship.
Suggested Sections

1. Parties: Identification of the principal and the broker, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the principal's business and broker's services

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of broker's appointment and detailed description of services to be provided

5. Broker's Obligations: Detailed responsibilities of the broker, including service standards and compliance requirements

6. Principal's Obligations: Responsibilities of the principal, including providing necessary information and support

7. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

8. Payment Terms: Timing of payments, invoicing requirements, and payment methods

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Obligations regarding confidential information and trade secrets

11. Data Protection: Compliance with GDPR and Dutch data protection laws

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement

Optional Sections

1. Non-Competition: Restrictions on broker's ability to work with competitors, include when exclusivity is required

2. Insurance: Requirements for professional liability insurance, include for regulated sectors or high-value transactions

3. Regulatory Compliance: Specific compliance requirements, include for regulated sectors like financial services

4. Training and Support: Details of training provided by principal to broker, include for complex products/services

5. Marketing and Branding: Guidelines for using principal's branding, include when broker represents principal publicly

6. Dispute Resolution: Alternative dispute resolution procedures, include for international agreements or high-value relationships

7. Force Majeure: Provisions for unforeseen circumstances, include for long-term or critical service relationships

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services

2. Service Level Agreement: Specific performance metrics and service standards

3. Territory Description: Geographical areas or market segments covered by the broker

4. Product/Service List: Detailed list of products/services the broker is authorized to sell/promote

5. Compliance Requirements: Specific regulatory requirements and compliance procedures

6. Reporting Templates: Standard forms for activity reporting and commission calculations

7. Key Performance Indicators: Metrics for measuring broker's performance and success

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Broker
Broker Services
Business Day
Commission
Confidential Information
Customer
Effective Date
Force Majeure Event
Gross Sales
Initial Term
Intellectual Property Rights
Net Sales
Personal Data
Principal
Products
Qualified Lead
Regulatory Requirements
Services
Successful Transaction
Territory
Term
Termination Date
Transaction
VAT
Working Hours
Commission Period
Payment Date
Performance Targets
Renewal Term
Revenue
Sales Target
Completed Sale
Commission Rate
Client
Governing Law
Relevant Industries

Real Estate

Financial Services

Insurance

Investment Banking

Commercial Trading

Import/Export

Commodities

Technology Sales

Manufacturing

Professional Services

Telecommunications

Energy

Relevant Teams

Legal

Commercial

Sales

Finance

Compliance

Risk Management

Operations

Business Development

Contract Administration

Partner Relations

Commission Administration

Relevant Roles

Commercial Director

Sales Manager

Business Development Manager

Legal Counsel

Compliance Officer

Finance Director

Contract Manager

Account Executive

Broker Relations Manager

Chief Commercial Officer

Risk Manager

Operations Director

Channel Partner Manager

Commission Administration Manager

Industries
Dutch Civil Code Book 7, Title 7 (Articles 425-445): Contains provisions specifically dealing with commercial agency agreements and commission structures, including rules about calculation and payment of commission, and the agent's rights and obligations
Dutch Civil Code Book 6 (General Contract Law): Governs general contract law principles including formation, validity, performance, and termination of contracts
Dutch Financial Supervision Act (Wet op het financieel toezicht - Wft): Relevant if the broker operates in financial services, containing regulations about licensing, compensation structures, and disclosure requirements
Dutch Competition Act (Mededingingswet): Ensures the commission agreement doesn't contain anti-competitive provisions or unfair trade practices
Dutch Money Laundering and Terrorist Financing Prevention Act (Wwft): Applicable if the broker handles financial transactions, requiring due diligence and reporting of suspicious transactions
Dutch Tax Law (Wet op de omzetbelasting 1968): Regulates VAT aspects of commission payments and broker services
Dutch Personal Data Protection Act (AVG/GDPR): Governs the processing of personal data in the context of the brokerage relationship
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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