Brokerage agreement template
Brokering a deal with a third party for a commission between businesses, under the Slovak Commercial Code
This document rests on a fixed pattern prepared by Paragrafo; it is not a law firm template. Its wording is not written by AI, only the details from the form are filled in. For a non-standard situation we recommend a solicitor.
Law in force as at
Zmluva o sprostredkovaní
- I. Zmluvné strany
- II. Predmet zmluvy
- III. Práva a povinnosti strán
- IV. Provízia a náklady
- V. Trvanie a zánik zmluvy
- VI. Záverečné ustanovenia
Under a brokerage agreement, the broker undertakes to carry out activity aimed at giving the principal the opportunity to conclude a certain contract with a third party. The principal undertakes to pay the broker a fee, the commission.
It is a contract type of the Commercial Code concluded by businesses in their business activity, for example when a company looks for a customer, supplier or distributor through a broker.
The commission is usually earned when the brokered contract is concluded. The parties may agree that it is earned as soon as the opportunity is obtained, or only once the third party performs its obligation.
Who needs this document
- A company looking for a customer, supplier or business partner through a broker
- A broker or agency arranging deals for a commission
- Cooperation in which only a concluded deal is paid for
- One-off brokering with a deadline for concluding the deal
What the document must contain
- Which contract the principal is to conclude with a third party
- When the commission is earned: on conclusion, on obtaining the opportunity or on performance
- The amount of the commission and how it is calculated
- Whether the principal also pays the broker's expenses
- The deadline for concluding the brokered contract, if you want to set one
- Whether the broker may also act for the other side of the deal
Legal basis
Commercial Code
Governs the brokerage agreement as a separate contract type: the duties of broker and principal, when the commission is earned, expenses, keeping documents and termination. Between businesses it also governs late payment interest and invoice payment terms.
Most common mistakes
Expenses not agreed expressly
The broker is entitled to expenses on top of the commission only if this was expressly agreed, and in case of doubt only when the commission is earned.
A deal concluded without the broker
If the principal concludes the contract with the third party without the broker's involvement, no commission is earned.
The broker works for both sides
If the broker, contrary to the agreement, also acted for the person with whom the brokered contract was concluded, no commission is earned. Anyone who wants to allow this must agree so in the contract.
No deadline for concluding the deal
If no time for concluding the brokered contract is set, either party may end the brokerage agreement by notifying the other. If a time is set and the contract is not concluded by then, the brokerage agreement ends.
Commission after the cooperation ends
The commission is earned even if the brokered contract is concluded only after the brokerage agreement has ended, as long as the broker's activity related to it.
Frequently asked questions
When does the broker earn the commission?
Usually when the contract being brokered is concluded. If the broker only has to obtain the opportunity to conclude a contract with certain content, the commission is earned once the opportunity is obtained. If it is agreed that the commission is earned only on the third party's performance, it is also earned when performance fails for reasons on the principal's side.
Does the broker guarantee that the third party will perform?
No. However, the broker may not propose a person about whom the broker knows or should know there is reasonable doubt that they will perform properly and on time, and on request must provide information to assess that person's reliability.
What commission applies if none was agreed?
The broker is entitled to the commission customary for brokering similar contracts at the time the brokerage agreement was concluded.
How long must the broker keep documents?
Documents obtained while brokering must be kept for the principal for as long as they may be significant for protecting the principal's interests.
Does a brokerage agreement also work for people without a business?
This template is for businesses under the Commercial Code. Brokering outside business activity is governed by the Civil Code, which this template does not cover.
Brokerage agreement for your business
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