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Brokers Fee Agreement Template for Switzerland

A Swiss Brokers Fee Agreement is a legally binding contract governed by Swiss law that establishes the terms and conditions under which a broker provides services to a client in exchange for specified fees. The agreement is structured in accordance with the Swiss Code of Obligations (particularly Articles 412-418) and outlines the scope of services, fee structure, payment terms, and the obligations of both parties. It includes provisions for success fees, exclusivity (if applicable), and the conditions under which fees become payable. The document incorporates specific Swiss legal requirements for brokerage relationships while providing clarity on the commercial terms of the engagement.

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What is a Brokers Fee Agreement?

The Brokers Fee Agreement is a critical document used in Switzerland to formalize the relationship between a broker and their client, whether in financial services, real estate, or other sectors. This agreement is essential when engaging a broker to facilitate transactions, source opportunities, or provide intermediary services. The document is structured to comply with Swiss legal requirements, particularly the Swiss Code of Obligations, while addressing practical commercial needs. It typically includes detailed fee structures, success fee calculations, service scope definitions, and protection mechanisms for both parties. The Brokers Fee Agreement is particularly important in Switzerland's sophisticated financial and business environment, where clear documentation of commercial relationships is crucial for legal certainty and risk management.

What sections should be included in a Brokers Fee Agreement?

1. Parties: Identification of the broker and the client with full legal names and addresses

2. Background: Context of the agreement and brief description of the broker's services and client's requirements

3. Definitions: Key terms used throughout the agreement including 'Services', 'Success Fee', 'Transaction', etc.

4. Scope of Services: Detailed description of the brokerage services to be provided

5. Broker's Obligations: Key responsibilities and duties of the broker including professional standards and reporting requirements

6. Client's Obligations: Client's responsibilities including providing necessary information and cooperation

7. Fee Structure: Detailed breakdown of all fees, including success fees, retainers, and payment terms

8. Payment Terms: Timing and method of payment, including conditions for fee becoming due

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes

12. Entire Agreement: Standard boilerplate confirming this document represents the complete agreement between parties

What sections are optional to include in a Brokers Fee Agreement?

1. Exclusivity: Used when the broker is granted exclusive rights to provide the specified services

2. Success Fee Protection: Included when there's a need to protect the broker's right to fees for a period after termination

3. International Transactions: Added when the services involve cross-border transactions

4. Compliance with Regulations: Included for regulated sectors like financial services or real estate

5. Force Majeure: Added when specific provisions for unforeseen circumstances are required

6. Data Protection: Detailed section when significant personal data processing is involved

7. Non-Circumvention: Used when there's risk of direct client-target dealings bypassing the broker

What schedules should be included in a Brokers Fee Agreement?

1. Schedule 1 - Scope of Services: Detailed breakdown of specific services to be provided

2. Schedule 2 - Fee Calculation: Detailed methodology for calculating success fees and other charges

3. Schedule 3 - Target Companies/Properties: List of specific targets if the broker's mandate is limited to certain entities or properties

4. Appendix A - Broker's Credentials: Copies of relevant licenses and certifications

5. Appendix B - Reporting Template: Standard format for regular reports to be provided by the broker

6. Appendix C - Compliance Requirements: Specific regulatory requirements applicable to the services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Sector

Sales

Cost

Free to use

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