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The Broker Commission Agreement is essential for businesses operating in the Philippines that engage brokers to facilitate transactions or business opportunities. This document is crucial for establishing clear terms of engagement between principals and brokers while ensuring compliance with Philippine regulations, including the Civil Code, RESA (for real estate), Securities Regulation Code (for securities), and other relevant laws. It's commonly used across various sectors including real estate, financial services, and trading, where intermediaries play a vital role. The agreement typically covers commission calculations, payment terms, service scope, territorial rights, and regulatory compliance requirements. It's particularly important in the Philippine context where specific laws govern different types of brokerage relationships and where tax and regulatory compliance need careful consideration.

1. Parties: Identifies the broker and the principal/client, including their complete legal names, addresses, and tax identification numbers as required under Philippine law

2. Background: Establishes the context of the agreement, including the broker's qualifications and licenses under RESA

3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Successful Transaction', 'Closing', and other relevant terms

4. Appointment and Scope: Details the broker's appointment, territory, and specific services to be provided

5. Broker's Rights and Obligations: Outlines the broker's responsibilities, including compliance with RESA and other applicable laws

6. Principal's Rights and Obligations: Specifies the principal's duties, including providing necessary information and cooperation

7. Commission Structure: Details the commission rates, calculation methods, and qualifying transactions

8. Payment Terms: Specifies when and how commissions will be paid, including tax considerations

9. Term and Termination: Defines the agreement duration and circumstances for termination

10. Confidentiality: Addresses handling of confidential information in compliance with the Data Privacy Act

11. Representations and Warranties: Contains statements about the parties' authority, broker's licenses, and compliance with laws

12. Liability and Indemnification: Sets out the parties' liability limitations and indemnification obligations

13. Dispute Resolution: Specifies procedures for resolving disputes under Philippine law

14. General Provisions: Includes standard clauses like notices, amendments, and governing law