Commission Agreement Between Broker And Agent Template for Saudi Arabia

The Commission Agreement Between Broker And Agent is a crucial document for establishing formal commercial agency relationships in Saudi Arabia. This agreement is typically used when a broker wishes to appoint an agent to represent their interests, sell products or services, or facilitate business transactions in return for commission-based compensation. The document must comply with Saudi Arabian Commercial Agency Law, Islamic law principles, and relevant regulatory requirements. It includes detailed provisions on commission structures, payment terms, territorial rights, performance expectations, and compliance obligations. The agreement is particularly important given Saudi Arabia's strict regulations on commercial agency relationships and the need for clear documentation of business arrangements. It serves as both a legal framework for the relationship and a practical guide for ongoing operations, while protecting both parties' interests under Saudi law.

1. Parties: Identification of the Broker and Agent, including full legal names, addresses, and commercial registration details

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

3. Definitions: Key terms used throughout the agreement, including specific industry terminology

4. Appointment and Scope: Terms of the Agent's appointment and detailed scope of authorized activities

5. Term and Territory: Duration of the agreement and geographical area of operation

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

7. Rights and Obligations of the Agent: Specific duties, responsibilities, and performance requirements of the Agent

8. Rights and Obligations of the Broker: Specific duties, responsibilities, and support to be provided by the Broker

9. Compliance Requirements: Regulatory compliance obligations including Shariah compliance and anti-money laundering requirements

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities during and after the agreement

12. Termination: Grounds and procedures for termination of the agreement

13. Consequences of Termination: Rights, obligations, and procedures following termination

14. Governing Law and Jurisdiction: Application of Saudi law and jurisdiction of Saudi courts

15. General Provisions: Standard legal provisions including notices, amendments, and severability