What is Commercial Brokerage?

01:04, 12/07/2024

Brokerage is an activity that has emerged very early in almost all transactions in daily life. Through brokerage, transactions take place smoothly and yield higher efficiency. In commercial activities, intermediary brokers are needed. So, what is commercial brokerage understood to be?

According to the Commercial Law 2005, commercial brokerage is a commercial activity in which a merchant acts as an intermediary (called the broker) for parties buying and selling goods or providing services (called the brokered parties) in negotiating and concluding contracts for the sale of goods or services and receives remuneration according to the brokerage contract.

From the above concept, it can be seen that commercial brokerage has the following basic characteristics:

Subjects:

- The broker must be a merchant and must have a business registration for commercial brokerage.- The brokered party may or may not be a merchant.

Content:

- Brokerage activities occur within a broad scope, including all intermediary tasks for parties in buying and selling relations, or providing and using services with the aim that these parties can conclude a contract with each other.- The broker acts in his or her own name to conduct brokerage activities for profit by receiving remuneration from the hiring party. The outcome of the broker’s business activities depends on the ability and effectiveness of their brokerage activities.

Form:

The brokerage relationship is established based on the brokerage contract. The brokerage contract reflects the rights and obligations between the broker and the brokered party.

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- The legal regulations in this article are according to Vietnamese Law;
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