Business Broker Contract for Hong Kong

Business Broker Contract Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions under which a business broker provides intermediary services to facilitate business transactions, sales, or acquisitions. The document outlines the scope of services, fee structures, confidentiality obligations, and compliance requirements in accordance with Hong Kong regulations, including the Contract Ordinance and relevant business intermediary legislation. It provides detailed provisions for broker appointments, success fees, information handling, and protection mechanisms for all parties involved.

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What is a Business Broker Contract?

The Business Broker Contract serves as a legally binding agreement between professional business intermediaries and clients seeking to buy, sell, or engage in business transactions in Hong Kong. This document is essential when engaging a business broker to facilitate business sales, acquisitions, or similar transactions, ensuring clear understanding of services, compensation structures, and mutual obligations. The contract incorporates Hong Kong's regulatory requirements, including compliance with the Contract Ordinance, Business Registration Ordinance, and relevant privacy laws. It provides comprehensive protection for both the broker and client, covering aspects such as confidentiality, commission structures, exclusivity arrangements, and dispute resolution mechanisms. The agreement is particularly crucial in Hong Kong's dynamic business environment, where complex cross-border transactions often require professional intermediary services.

What sections should be included in a Business Broker Contract?

1. Parties: Identification of the broker and the client, including full legal names, registration numbers, and registered addresses

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

3. Definitions: Key terms used throughout the agreement, including 'Success Fee', 'Introduction', 'Target Business', etc.

4. Appointment and Scope of Services: Details of the broker's appointment and comprehensive list of services to be provided

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

6. Broker's Obligations: Detailed responsibilities and duties of the broker, including regulatory compliance requirements

7. Client's Obligations: Client's responsibilities, including providing accurate information and cooperation

8. Fees and Payment Terms: Structure of fees, including retainer, success fees, and payment conditions

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Data Protection: Compliance with Personal Data (Privacy) Ordinance and data handling procedures

11. Representations and Warranties: Standard warranties from both parties regarding capacity and authority

12. Limitation of Liability: Extent and limitations of the broker's liability

13. General Provisions: Standard clauses including notices, entire agreement, governing law, etc.

What sections are optional to include in a Business Broker Contract?

1. Exclusivity: Used when the broker is granted exclusive rights to represent the client

2. Territory: Defines geographical limitations of the broker's services when applicable

3. Non-Circumvention: Prevents direct dealings between client and introduced parties, used in high-value transactions

4. Force Majeure: Addresses unforeseen circumstances preventing performance

5. Intellectual Property: Include when broker will create or use significant IP in service delivery

6. Assignment and Subcontracting: Used when either party may need to transfer rights or delegate duties

7. Post-Termination Obligations: Important for complex deals with ongoing obligations after termination

8. Dispute Resolution: Optional detailed arbitration or mediation procedures

What schedules should be included in a Business Broker Contract?

1. Schedule 1: Service Description: Detailed breakdown of services to be provided by the broker

2. Schedule 2: Fee Structure: Detailed calculation methods for success fees and other charges

3. Schedule 3: Target Business Profile: Specific criteria and parameters of businesses to be targeted

4. Schedule 4: Introduced Parties List: Running list of businesses/parties introduced by the broker

5. Schedule 5: Required Information: List of documentation and information required from the client

6. Appendix A: Compliance Checklist: Regulatory compliance requirements and procedures

7. Appendix B: Reporting Templates: Standard forms for progress reports and updates

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

Hong Kong

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Professional Services

Business Consulting

Mergers & Acquisitions

Financial Services

Real Estate

Retail

Manufacturing

Technology

Healthcare

Hospitality

Industrial

Import/Export

Logistics

Education

Relevant Teams

Legal

Finance

Compliance

Corporate Development

Strategy

Operations

Business Development

Risk Management

Mergers & Acquisitions

Executive Leadership

Relevant Roles

Business Broker

Merger & Acquisition Advisor

Business Development Manager

Chief Executive Officer

Chief Financial Officer

Commercial Director

Business Owner

Corporate Lawyer

Compliance Officer

Finance Director

Investment Manager

Operations Director

Strategic Planning Manager

Business Transfer Agent

Due Diligence Specialist

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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