Business Broker Contract Template for India

The Business Broker Contract is essential for formalizing professional intermediary services in business sales, mergers, and acquisitions within the Indian market. This document is typically used when engaging a professional broker to facilitate the sale or purchase of a business, requiring detailed documentation of the broker's responsibilities, compensation structure, and service parameters. The contract must comply with Indian legislation, including the Indian Contract Act, 1872, SEBI regulations (where applicable), and relevant state laws. It becomes particularly important in protecting both parties' interests, maintaining confidentiality, and ensuring clear understanding of commission structures and success fees. The Business Broker Contract should be customized based on the specific transaction type, industry sector, and scope of services required.

1. Parties: Identification of the Business Broker and the Client (business owner or buyer)

2. Background: Context of the agreement and brief description of the brokerage services to be provided

3. Definitions: Key terms used throughout the agreement including 'Services', 'Commission', 'Successful Transaction', etc.

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of services to be provided

5. Term and Termination: Duration of the agreement and conditions for termination

6. Broker's Rights and Obligations: Detailed responsibilities of the broker including marketing, client representation, and confidentiality obligations

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

8. Commission Structure: Detailed breakdown of fees, commission rates, and payment terms

9. Confidentiality: Provisions for handling sensitive business information

10. Non-Circumvention: Prevention of direct deals between parties introduced by the broker

11. Representations and Warranties: Statements of fact and guarantees by both parties

12. Indemnification: Protection against losses and liability provisions

13. Dispute Resolution: Process for handling disagreements and jurisdictional matters

14. General Provisions: Standard clauses including notices, amendments, and governing law