When it comes to buying or selling a business, it`s essential to have a contract in place to protect all parties involved. This is where a business broker contract comes in. A business broker contract is a legal document that outlines the terms of the agreement between the business broker and the client. The contract should be comprehensive, transparent, and easy to read. In this article, we will provide you with a business broker contract sample that can help you understand what should be included in the document.
Section 1: Introduction
The introduction of the business broker contract should include the names of the parties involved, the date of the agreement, and the purpose of the contract. It should also include a brief statement outlining the scope of the agreement. For example:
„This business broker contract (the „Agreement“) is entered into on [date] by and between [broker`s name] (the „Broker“) and [client`s name] (the „Client“). The purpose of this Agreement is to outline the terms and conditions of the services to be provided by the Broker to the Client in connection with the purchase or sale of [describe the business].“
Section 2: Services Provided
This section of the contract should outline the services provided by the business broker. It should also include the fees and expenses associated with the services. For example:
„The Broker agrees to provide services to the Client in connection with the purchase or sale of the above-mentioned business. The services provided by the Broker may include, but are not limited to, the following:
– Conducting market research to determine the value of the business
– Preparing a marketing plan and advertising the business
– Screening potential buyers or sellers
– Assisting in negotiating the sale or purchase price
– Drafting and reviewing legal documents related to the sale or purchase
The Client agrees to pay the Broker a commission of [insert percentage] of the total sale price of the business. The Client is also responsible for any expenses incurred by the Broker in connection with the services provided.“
Section 3: Term and Termination
This section should specify the length of the contract and the terms under which it can be terminated. For example:
„This Agreement shall commence on [date] and shall continue until [insert length of time]. Either party may terminate this Agreement with [insert length of notice] written notice to the other party.“
Section 4: Confidentiality and Non-Disclosure
This section should outline how confidential information will be handled and protected by both parties. For example:
„The Broker agrees to keep all information related to the business and the Client confidential and not disclose it to any third party without the Client`s written consent. The Client agrees to keep all information related to the Broker`s services confidential and not disclose it to any third party without the Broker`s written consent.“
Section 5: Indemnification
This section should specify which party is responsible for any losses or damages that may arise during the contract. For example:
„The Client agrees to indemnify and hold harmless the Broker and its affiliates, officers, and employees from any claim, demand, or loss arising out of the Broker`s services provided under this Agreement.“
Conclusion
A business broker contract is a crucial document that protects the interests of both parties involved in the purchase or sale of a business. The contract should be comprehensive and cover all aspects of the services provided, fees and expenses, confidentiality, and termination. The business broker contract sample provided in this article is a starting point to help you understand what should be included in the document. Before finalizing the contract, it`s essential to consult a legal professional to ensure that all clauses are legally binding and enforceable.