Broker Contract Agreement Template for Saudi Arabia

The Broker Contract Agreement serves as a fundamental legal instrument for establishing and governing brokerage relationships within Saudi Arabia's unique legal framework. This document is essential when engaging brokers for various commercial activities, whether in real estate, financial services, or general commerce. It ensures compliance with Saudi Arabian commercial laws, including the Commercial Court Law (Royal Decree No. M/32) and Commercial Agencies Law, while adhering to Sharia principles. The agreement details commission structures, service scope, obligations, and compliance requirements, incorporating necessary provisions for anti-money laundering regulations and sector-specific requirements. It's particularly relevant for businesses expanding their reach through intermediaries in the Saudi market, providing a robust framework for managing broker relationships while mitigating legal and operational risks.

1. Parties: Identification of the principal and broker, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' intention to enter into a brokerage relationship

3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpreting the document

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of authorized brokerage services

5. Sharia Compliance: Declaration of compliance with Islamic law principles and specific provisions ensuring adherence

6. Broker's Obligations: Detailed responsibilities, including due diligence, reporting, and compliance requirements

7. Principal's Obligations: Responsibilities of the principal, including provision of information and cooperation

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

9. Term and Termination: Duration of the agreement and circumstances under which it may be terminated

10. Confidentiality: Obligations regarding confidential information and trade secrets

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

12. Compliance with Laws: Obligations to comply with Saudi regulations, including anti-money laundering laws

13. Liability and Indemnification: Extent of broker's liability and indemnification obligations

14. Force Majeure: Provisions for unforeseen circumstances preventing performance

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

16. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions