The Brokerage Contract serves as a fundamental legal instrument for establishing and governing intermediary relationships in Indonesia's dynamic business environment. This document is essential when engaging a broker to facilitate transactions, whether in real estate, securities, commodities, or other sectors where intermediary services are required. The contract must comply with Indonesian Civil Code (KUHPer) provisions and sector-specific regulations, particularly when dealing with regulated industries. A well-structured Brokerage Contract should address key aspects including service scope, commission structures, regulatory compliance, and risk allocation, while incorporating specific requirements of Indonesian business law and local commercial practices. This document is particularly crucial given Indonesia's complex regulatory landscape and the need for clear delineation of rights and responsibilities in brokerage relationships.
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1. Parties: Identification of the broker and the client, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope of Services: Terms of the broker's appointment and detailed description of services to be provided
5. Broker's Rights and Obligations: Detailed listing of the broker's responsibilities, duties, and rights under the agreement
6. Client's Rights and Obligations: Detailed listing of the client's responsibilities, duties, and rights under the agreement
7. Commission and Payment Terms: Structure and calculation of broker's fees, payment schedule, and payment methods
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Confidentiality: Provisions regarding the handling of confidential information
10. Representations and Warranties: Statements of fact and assurances made by both parties
11. Liability and Indemnification: Limitations of liability and indemnification obligations
12. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes
13. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Regulatory Compliance: Specific section addressing compliance with Indonesian financial services regulations - include when dealing with regulated financial products
2. Insurance Requirements: Details of required insurance coverage - include when dealing with high-value transactions or specific industries
3. Non-Competition: Restrictions on competitive activities - include when protecting market territory or client relationships
4. Force Majeure: Provisions for unforeseen circumstances - include when dealing with long-term contracts or volatile markets
5. Data Protection: Specific provisions for handling personal data - include when dealing with individual clients or sensitive information
6. Intellectual Property: Protection of IP rights - include when proprietary tools or systems are involved
7. Sub-brokers: Provisions for engaging sub-brokers - include when the broker may need to delegate responsibilities
1. Schedule A - Service Level Agreement: Detailed specifications of service levels, response times, and performance metrics
2. Schedule B - Commission Structure: Detailed breakdown of commission calculations and examples
3. Schedule C - Territory: Definition of geographical or market territory covered by the agreement
4. Schedule D - Approved Sub-brokers: List of pre-approved sub-brokers if applicable
5. Schedule E - Compliance Requirements: Detailed regulatory compliance requirements and procedures
6. Appendix 1 - Required Documents: List of documents required for client onboarding and transactions
7. Appendix 2 - Contact Details: Key contact information for both parties including escalation procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Securities and Investment
Insurance
Commodities Trading
Import/Export
Property Development
Financial Services
Shipping and Maritime
Agriculture
Mining and Resources
Manufacturing
Relevant Teams
Legal
Compliance
Business Development
Operations
Risk Management
Commercial
Regulatory Affairs
Sales
Finance
Corporate Governance
Relevant Roles
Legal Counsel
Compliance Officer
Business Development Manager
Contract Manager
Risk Manager
Chief Operating Officer
Broker
Commercial Director
Legal Director
Regulatory Affairs Manager
Business Unit Head
Partnership Manager
Sales Director
Chief Executive Officer
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