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Commercial Broker Agreement for Philippines

Commercial Broker Agreement Template for Philippines

A Commercial Broker Agreement governed by Philippine law establishes the legal framework for a brokerage relationship between a principal and a broker. The agreement comprehensively outlines the broker's authority to facilitate business transactions, defines commission structures, and specifies obligations under Philippine commercial and civil law. It incorporates relevant provisions from the Civil Code of the Philippines and the Code of Commerce, ensuring compliance with local regulatory requirements while protecting both parties' interests in the commercial relationship.

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What is a Commercial Broker Agreement?

The Commercial Broker Agreement is essential for businesses operating in the Philippines that engage intermediaries to facilitate commercial transactions. This document is particularly crucial as it establishes the legal framework under Philippine law for the relationship between principals and their appointed brokers. It addresses key aspects such as scope of authority, commission structures, and compliance with local regulations including the Civil Code of the Philippines and relevant commercial laws. The agreement is designed to protect both parties' interests while ensuring compliance with Philippine broker licensing requirements, tax regulations, and industry-specific standards. Commercial Broker Agreements are commonly used when companies need to expand their market reach through professional intermediaries, requiring clear definition of territories, commission structures, and performance expectations.

What sections should be included in a Commercial Broker Agreement?

1. Parties: Identifies the principal and the broker, including their complete legal names, addresses, and business registration details

2. Background: Explains the context of the agreement, the broker's qualifications, and the principal's need for brokerage services

3. Definitions: Defines key terms used throughout the agreement, including 'Services', 'Commission', 'Territory', and other relevant terms

4. Appointment and Scope of Authority: Details the broker's appointment, whether exclusive or non-exclusive, and the specific scope of authorized activities

5. Broker's Services: Comprehensive description of services to be provided by the broker

6. Commission Structure: Details the commission rates, calculation methods, and payment terms

7. Payment Terms: Specifies payment schedules, invoicing procedures, and handling of expenses

8. Obligations of the Broker: Lists the broker's duties, responsibilities, and standard of care

9. Obligations of the Principal: Outlines the principal's responsibilities and commitments

10. Representations and Warranties: Standard representations from both parties, including broker's licenses and qualifications

11. Term and Termination: Specifies the duration of the agreement and termination provisions

12. Confidentiality: Provisions for handling confidential information and trade secrets

13. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Commercial Broker Agreement?

1. Non-Compete and Non-Solicitation: Restrictions on broker's competitive activities, used when protecting market territory is crucial

2. Intellectual Property Rights: Includes when the broker will be using or creating intellectual property in the course of services

3. Insurance Requirements: Detailed insurance obligations, particularly relevant for high-value transactions

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

5. Data Protection: Additional privacy and data handling requirements, necessary when dealing with personal data

6. Training and Support: Include when the principal will provide specific training or support to the broker

7. Marketing and Branding: Guidelines for using principal's branding, needed when broker represents the principal publicly

8. Dispute Resolution: Alternative dispute resolution procedures, recommended for high-value or international arrangements

What schedules should be included in a Commercial Broker Agreement?

1. Schedule A - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods

2. Schedule B - Territory Definition: Specific geographical areas or market segments covered by the agreement

3. Schedule C - Approved Products/Services: List of products or services the broker is authorized to promote/sell

4. Schedule D - Reporting Requirements: Templates and procedures for regular reporting

5. Schedule E - Service Level Requirements: Specific performance metrics and standards

6. Appendix 1 - Broker's Licenses and Certifications: Copies of relevant licenses and professional certifications

7. Appendix 2 - Required Forms and Documentation: Standard forms and documents used in the brokerage process

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions




































Clauses



































Relevant Industries

Real Estate

Financial Services

Insurance

Import/Export

Commodities Trading

Manufacturing

Wholesale Distribution

Technology Services

Construction

Agriculture

Energy

Telecommunications

Relevant Teams

Legal

Compliance

Finance

Sales

Business Development

Operations

Risk Management

Procurement

Commercial Operations

Partner Relations

Relevant Roles

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Chief Financial Officer

Sales Director

Procurement Manager

Contract Manager

Risk Manager

Operations Director

Channel Manager

Partnership Manager

Broker Relations Manager

Chief Executive Officer

Commercial Broker

Business Agent

Industries







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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