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Broker Commission Agreement Template for Indonesia

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Key Requirements PROMPT example:

Broker Commission Agreement

"I need a Broker Commission Agreement for our Indonesian real estate company to engage multiple independent brokers, with a tiered commission structure starting from January 2025, including specific performance targets and territorial exclusivity provisions."

Document background
The Broker Commission Agreement is essential for businesses operating in Indonesia that utilize intermediaries to facilitate transactions or generate sales. This document type is particularly relevant when establishing formal commission-based relationships between principals and brokers under Indonesian law. The agreement typically includes detailed commission structures, performance metrics, territorial rights, and compliance requirements aligned with Indonesian regulations, including the Civil Code (KUHPerdata) and Commercial Code (KUHD). It's commonly used across various sectors from real estate to financial services, providing legal protection for both parties while ensuring clear terms for commission payments and service expectations. The document should be tailored to account for specific Indonesian tax implications, regulatory requirements, and local business practices.
Suggested Sections

1. Parties: Identification of the Principal and the Broker, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, nature of the Principal's business, and purpose of engaging the Broker

3. Definitions: Definitions of key terms used throughout the agreement, including 'Commission', 'Territory', 'Products/Services', 'Successful Transaction'

4. Appointment and Scope: Terms of the Broker's appointment, exclusivity/non-exclusivity, and detailed scope of services

5. Broker's Rights and Obligations: Detailed responsibilities of the Broker, including reporting requirements, performance standards, and compliance obligations

6. Principal's Rights and Obligations: Principal's commitments, including information provision, support, and cooperation obligations

7. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

8. Payment Terms: Payment mechanics, timing, currency, tax considerations, and invoice requirements

9. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

10. Confidentiality: Obligations regarding confidential information protection and permitted disclosures

11. Representations and Warranties: Standard representations about authority, capacity, and compliance with laws

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Non-Competition: Restrictions on Broker's ability to represent competitors, used when exclusivity is important

2. Intellectual Property: IP rights and usage terms, needed when Broker will handle branded materials or proprietary information

3. Insurance: Insurance requirements for Broker, important for high-value transactions or regulated industries

4. Performance Targets: Specific KPIs and minimum performance requirements, used for performance-based arrangements

5. Training and Support: Details of training provided by Principal, relevant for complex products/services

6. Compliance with Anti-Corruption Laws: Detailed anti-corruption provisions, essential for international transactions or government-related business

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets or industries

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services or transaction types

2. Territory Definition: Specific geographical areas or market segments covered by the agreement

3. Products and Services: Comprehensive list of products/services covered under the agreement

4. Reporting Templates: Standard formats for regular reports required from the Broker

5. Performance Metrics: Detailed KPIs and calculation methodologies

6. Compliance Procedures: Step-by-step procedures for regulatory compliance and reporting

7. Contact Details: List of key contacts and escalation matrices for both parties

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 | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses







































Relevant Industries

Real Estate

Financial Services

Insurance

International Trade

Commodities Trading

Securities and Investments

Import/Export

Manufacturing

Retail Distribution

Commercial Property

Agricultural Products

Industrial Equipment

Technology Services

Maritime and Shipping

Relevant Teams

Legal

Sales

Business Development

Finance

Compliance

Commercial Operations

Partner Relations

Contract Management

Account Management

Commission Administration

Relevant Roles

Sales Director

Business Development Manager

Commercial Director

Legal Counsel

Compliance Officer

Chief Financial Officer

Sales Operations Manager

Channel Partner Manager

Broker Relations Manager

Contract Administrator

Business Development Director

Regional Sales Manager

Commission Accounting Manager

Partnerships Director

Agency Relations Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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