The Business Broker Contract serves as a legally binding agreement between professional business intermediaries and clients seeking to buy, sell, or engage in business transactions in Hong Kong. This document is essential when engaging a business broker to facilitate business sales, acquisitions, or similar transactions, ensuring clear understanding of services, compensation structures, and mutual obligations. The contract incorporates Hong Kong's regulatory requirements, including compliance with the Contract Ordinance, Business Registration Ordinance, and relevant privacy laws. It provides comprehensive protection for both the broker and client, covering aspects such as confidentiality, commission structures, exclusivity arrangements, and dispute resolution mechanisms. The agreement is particularly crucial in Hong Kong's dynamic business environment, where complex cross-border transactions often require professional intermediary services.
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1. Parties: Identification of the broker and the client, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Key terms used throughout the agreement, including 'Success Fee', 'Introduction', 'Target Business', etc.
4. Appointment and Scope of Services: Details of the broker's appointment and comprehensive list of services to be provided
5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
6. Broker's Obligations: Detailed responsibilities and duties of the broker, including regulatory compliance requirements
7. Client's Obligations: Client's responsibilities, including providing accurate information and cooperation
8. Fees and Payment Terms: Structure of fees, including retainer, success fees, and payment conditions
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Data Protection: Compliance with Personal Data (Privacy) Ordinance and data handling procedures
11. Representations and Warranties: Standard warranties from both parties regarding capacity and authority
12. Limitation of Liability: Extent and limitations of the broker's liability
13. General Provisions: Standard clauses including notices, entire agreement, governing law, etc.
1. Exclusivity: Used when the broker is granted exclusive rights to represent the client
2. Territory: Defines geographical limitations of the broker's services when applicable
3. Non-Circumvention: Prevents direct dealings between client and introduced parties, used in high-value transactions
4. Force Majeure: Addresses unforeseen circumstances preventing performance
5. Intellectual Property: Include when broker will create or use significant IP in service delivery
6. Assignment and Subcontracting: Used when either party may need to transfer rights or delegate duties
7. Post-Termination Obligations: Important for complex deals with ongoing obligations after termination
8. Dispute Resolution: Optional detailed arbitration or mediation procedures
1. Schedule 1: Service Description: Detailed breakdown of services to be provided by the broker
2. Schedule 2: Fee Structure: Detailed calculation methods for success fees and other charges
3. Schedule 3: Target Business Profile: Specific criteria and parameters of businesses to be targeted
4. Schedule 4: Introduced Parties List: Running list of businesses/parties introduced by the broker
5. Schedule 5: Required Information: List of documentation and information required from the client
6. Appendix A: Compliance Checklist: Regulatory compliance requirements and procedures
7. Appendix B: Reporting Ƶ: Standard forms for progress reports and updates
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