Net Brokerage Agreement for India

Net Brokerage Agreement Template for India

A Net Brokerage Agreement is a legally binding contract governed by Indian law that establishes the terms and conditions under which a broker provides intermediary services to a principal company. The agreement details commission structures, payment terms, service scope, and operational requirements while ensuring compliance with Indian regulations including RERA (for real estate), relevant financial services legislation, and the Indian Contract Act. It includes provisions for dispute resolution, confidentiality, and territory restrictions, structured to protect both parties' interests while facilitating efficient business operations within the Indian legal framework.

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What is a Net Brokerage Agreement?

The Net Brokerage Agreement serves as a comprehensive legal framework for establishing and managing brokerage relationships in the Indian market. This document is essential when companies wish to engage brokers or intermediaries for various commercial activities, ensuring clear definition of commission structures, service expectations, and compliance requirements. The agreement, governed by Indian law, typically includes detailed provisions for payment terms, service scope, territorial rights, and performance metrics. The Net Brokerage Agreement is particularly crucial in regulated industries where intermediary services require strict compliance with statutory requirements. It provides protection for both the principal company and the broker while establishing clear operational guidelines and risk management protocols.

What sections should be included in a Net Brokerage Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including the broker's qualifications and the nature of services to be provided

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

4. Scope of Services: Detailed description of brokerage services to be provided, including any territorial limitations

5. Appointment and Authority: Terms of broker's appointment and extent of authority to act on behalf of the principal

6. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms

7. Payment Terms: Timing and method of commission payments, including invoice procedures and payment deadlines

8. Obligations of the Broker: Detailed responsibilities and duties of the broker, including compliance requirements

9. Obligations of the Principal: Responsibilities and commitments of the principal party

10. Representations and Warranties: Standard warranties from both parties regarding capacity, authority, and compliance

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

12. Term and Termination: Duration of agreement and conditions for termination

13. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law

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

What sections are optional to include in a Net Brokerage Agreement?

1. Exclusivity: Terms of exclusive arrangement, if applicable - include when broker is granted exclusive rights

2. Sub-Brokers: Provisions for appointing and managing sub-brokers - include when sub-brokerage arrangements are permitted

3. Insurance: Insurance requirements and liability coverage - include for high-value or high-risk transactions

4. Marketing and Promotion: Terms regarding marketing activities and brand usage - include when broker will conduct marketing

5. Data Protection: Specific provisions for handling personal data - include when dealing with sensitive customer information

6. Force Majeure: Provisions for unforeseen circumstances - include when long-term or high-value relationship

7. Non-Compete: Restrictions on competitive activities - include when protecting market position

8. Training and Support: Terms for ongoing training and support - include when principal provides specialized systems or methods

What schedules should be included in a Net Brokerage Agreement?

1. Commission Schedule: Detailed breakdown of commission rates for different types of transactions or services

2. Territory Schedule: Detailed description of geographical areas covered by the agreement

3. Service Level Agreement: Specific performance metrics and service standards

4. Required Documentation: List of documents required for various types of transactions

5. Compliance Checklist: Detailed compliance requirements and procedures

6. Contact Details: List of key contacts and escalation matrix

7. Standard Operating Procedures: Detailed procedures for common transactions and activities

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

India

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Financial Services

Insurance

Commodities Trading

Stock Broking

Import/Export

Shipping

Logistics

Commercial Property

Investment Banking

Agriculture

Manufacturing

Relevant Teams

Legal

Finance

Compliance

Business Development

Sales

Operations

Risk Management

Commercial

Procurement

Channel Management

Relevant Roles

Business Development Manager

Legal Counsel

Compliance Officer

Financial Controller

Commercial Director

Operations Manager

Chief Financial Officer

Procurement Manager

Sales Director

Contract Manager

Risk Manager

Regional Manager

Channel Partner Manager

Business Manager

Company Secretary

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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