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Broker Non Circumvention Agreement Template for India

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Key Requirements PROMPT example:

Broker Non Circumvention Agreement

"I need a Broker Non-Circumvention Agreement for my real estate brokerage firm in Mumbai, protecting our relationships with international property developers and ensuring a 2% commission structure for all successful deals, with the agreement to commence from January 2025."

Document background
The Broker Non-Circumvention Agreement is essential in the Indian business landscape where relationship-based transactions are common and protecting intermediary interests is crucial. This document is typically used when a broker or intermediary introduces valuable business opportunities, clients, or relationships to a principal company and needs to ensure their role and commission rights are protected. It prevents the introduced parties from circumventing the broker to deal directly with each other, thereby avoiding commission payments. The agreement is structured to comply with Indian contract law, competition law, and specific relief provisions, making it enforceable in Indian courts. It includes detailed provisions for confidentiality, commission structures, and remedies for breach, while considering Indian business customs and legal requirements.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including the broker and the principal

2. Background: Context of the brokerage relationship and purpose of the agreement

3. Definitions: Key terms including 'Confidential Information', 'Protected Relationships', 'Circumvention', 'Commission', and 'Territory'

4. Scope of Agreement: Details of the brokerage relationship and protected activities

5. Non-Circumvention Obligations: Core provisions preventing direct dealing with protected relationships

6. Confidentiality Obligations: Requirements for handling and protecting confidential information

7. Commission Structure: Framework for commission payments and calculations

8. Term and Termination: Duration of the agreement and termination provisions

9. Representations and Warranties: Standard declarations by both parties

10. Breach and Remedies: Consequences of violation and available remedies

11. General Provisions: Standard boilerplate including governing law, notices, and amendments

Optional Sections

1. Non-Compete Clause: Additional restrictions on competitive activities, used when broker has access to sensitive market information

2. International Transactions: Special provisions for cross-border deals, needed when operating internationally

3. Digital Communications: Specific rules for electronic communications and online introductions, relevant for digital brokers

4. Sub-Brokers: Provisions allowing/restricting use of sub-brokers, needed in complex or multi-tiered arrangements

5. Dispute Resolution: Detailed arbitration or mediation procedures, recommended for high-value relationships

6. Insurance Requirements: Specific insurance obligations, important for regulated industries or high-risk transactions

Suggested Schedules

1. Schedule A - Protected Relationships: List of specific clients, contacts, or relationships protected under the agreement

2. Schedule B - Commission Rates: Detailed commission structures for different types of transactions or services

3. Schedule C - Territory Definition: Specific geographical areas or market segments covered by the agreement

4. Schedule D - Approved Sub-Brokers: List of pre-approved sub-brokers if applicable

5. Appendix 1 - Confidentiality Agreement: Standard form of confidentiality agreement for use with third parties

6. Appendix 2 - Reporting Templates: Standard forms for deal reporting and commission calculations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions























Clauses

























Relevant Industries

Real Estate

Financial Services

Import/Export

Manufacturing

Technology

Commodities Trading

Business Consulting

Mergers & Acquisitions

Insurance

Energy

Healthcare

Telecommunications

Relevant Teams

Legal

Commercial

Business Development

Sales

Compliance

Finance

Partnerships

Operations

Risk Management

Corporate Development

Relevant Roles

Business Development Manager

Sales Director

Chief Commercial Officer

Broker

Business Intermediary

Managing Director

Commercial Director

Partnership Manager

Channel Manager

Business Consultant

Deal Originator

Relationship Manager

Chief Executive Officer

Legal Counsel

Compliance Officer

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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