A broker is a commercial intermediary who acts neither in his own name nor for his own account, but who arranges contacts between persons in order to facilitate or conclude commercial operations or transactions between those persons.
Brokers are obliged to use their best efforts with a view to concluding agreements and are to provide all information necessary to assist the parties. They must remain independent of the parties to the transaction, and cannot personally intervene in the transaction unless the parties so agree.
The broker is remunerated by whichever party has instructed him, and receives a percentage of the value of the transaction. This is paid when the agreement which he has facilitated is entered into, unless the agreement is subject to conditions precedent, in which case he will be paid only once those conditions have been fulfilled.
A broker loses his right to remuneration if he acts in the interests of the other party in contravention of his duties towards his principal, or if he receives payment from the other party without the knowledge of his principal.
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