Broker Intermediary Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes and regulates the relationship between a principal company and a broker/intermediary. The agreement defines the scope of brokerage services, commission structures, territories, and operational parameters while ensuring compliance with UAE federal laws, including Federal Law No. 18 of 1993 (Commercial Code) and relevant regulatory requirements. It includes detailed provisions for performance standards, compensation, termination rights, and obligations of both parties, with specific attention to UAE market practices and regulatory framework.

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What is a Broker Intermediary Agreement?

The Broker Intermediary Agreement is essential for businesses operating in the UAE that engage third-party intermediaries to facilitate transactions, secure customers, or represent their interests in specific markets. This document is particularly relevant in the context of UAE's business environment, where intermediary relationships are common and strictly regulated. The agreement must comply with UAE Federal Laws, including Commercial Code provisions and specific regulatory requirements depending on the industry sector (such as RERA for real estate or SCA for financial services). It establishes clear parameters for the broker's authority, commission structures, territorial rights, and performance expectations while incorporating necessary protections for both parties' interests. The document is designed to create a legally robust framework that accounts for both UAE legal requirements and common market practices.

What sections should be included in a Broker Intermediary Agreement?

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

2. Background: Context of the agreement and brief description of the parties' business relationship

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

4. Appointment and Scope: Terms of broker's appointment and detailed scope of services

5. Broker's Obligations: Detailed responsibilities and duties of the broker

6. Principal's Obligations: Responsibilities and duties of the principal

7. Commission Structure: Details of broker's compensation, including rates, calculation methods, and payment terms

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

11. Representations and Warranties: Standard representations and warranties from both parties

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

13. Force Majeure: Provisions for unforeseen circumstances preventing performance

14. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

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

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

1. Regulatory Compliance: Specific compliance requirements when dealing with regulated industries (e.g., financial services, real estate)

2. Insurance Requirements: Detailed insurance obligations when specific coverage is required

3. Performance Metrics: Specific KPIs and performance standards when quantifiable targets are needed

4. Marketing and Branding: Guidelines for use of principal's brand when broker represents principal publicly

5. Data Protection: Specific data handling requirements when personal data processing is involved

6. Training and Support: Details of training and support provided by principal when required

7. Shariah Compliance: Specific provisions for ensuring Shariah compliance when dealing with Islamic financial products

8. Sub-brokers: Provisions regarding appointment and management of sub-brokers when allowed

What schedules should be included in a Broker Intermediary Agreement?

1. Schedule 1 - Commission Rates: Detailed breakdown of commission structures and calculations

2. Schedule 2 - Territory: Definition of geographical areas or market segments covered

3. Schedule 3 - Products/Services: Detailed list of products or services covered by the agreement

4. Schedule 4 - Reporting Requirements: Templates and specifications for required reports

5. Schedule 5 - Service Level Agreement: Detailed performance standards and metrics

6. Appendix A - Required Licenses: Copies or details of required regulatory licenses and permits

7. Appendix B - Contact Details: Key contact information for both parties

8. Appendix C - Compliance Procedures: Detailed compliance procedures and requirements

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

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use

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