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Prospective Client Broker Agreement - Freight and Shipping

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Prospective Client Broker Agreement - Freight and Shipping Powered By Docstoc
					This is an agreement between a broker and a freight and shipping company for
brokerage services. The broker is engaged to solicit new customers and attract new
business opportunities for the freight company. In addition, the agreement provides that
the broker will receive a commission fee for any new business the company receives
due to the broker’s reference. This document should be used by small businesses that
operate as freight or shipping companies and want to hire a broker to market and solicit
new customers to the company.
    PROSPECTIVE CLIENT BROKER AGREEMENT - FREIGHT AND SHIPPING



This Prospective Carrier Broker Agreement (“Agreement”) is made and entered into this
_______________ [Instructions: insert date] by _______________ [Instructions: insert name
of Carrier], (hereinafter “Carrier”), located at _______________ [Instructions: insert location]
and _______________ [Instructions: insert name of Broker] with its principal offices located
at _______________ [Instructions: insert location] (hereinafter “Broker”).


                                            Recitals
WHEREAS both parties have the legal capacity to enter into this Agreement; and

WHEREAS Carrier desires use Broker’s services to find customers that can use Carrier’s
shipping and freight services; and

WHEREAS Broker desires to enter into a relationship with Carrier to solicit new clients for
Carrier in accordance with Carrier’s instructions and the terms of this Agreement, and thereby
earn commission income.



                                          Agreement


NOW, THEREFORE, Carrier and Broker Agree as follows:

1. The above recitals are true and correct and form an integral part of this Agreement.


2. Responsibilities of Broker: The responsibilities of Broker are as follows:
   A. Broker shall comply with all federal, state, and local laws related to the brokerage of the
      freight.
   B. Broker shall solicit and obtain qualified customers for Carrier.
   C. Broker shall determine Broker’s method of obtaining clients, provided that the method is
      legal and ethical. Broker may utilize Broker’s employees and outside contractors to
      provide the services. Broker shall make sure that clients have all the necessary
      information pertaining to any transaction under this Agreement. Broker shall at all time
      interact with all clients in a professional manner.
   D. Broker agrees keep abreast of all current laws, rules, and issues affecting the freight and
       shipping industry, in order to conduct its services at the highest level.
   E. Broker acknowledges that it does not have the authority to enter into any agreement for
      Carrier, and, as such, will not take any action that will bind Carrier in any manner.
   F. Broker shall assist Carrier with all the necessary steps in completing an agreement with a
       prospective client.
    G. Broker shall provide worker’s compensation insurance to all Broker’s employees and
        agents.
    H. All correspondence from Carrier will be treated as confidential by Broker. This
        correspondence will not be disclosed without the written permission of Carrier.
    I. _______________ [Instructions: set forth in detail responsibilities of Broker]


3. Carrier’s Responsibilities: The responsibilities of Carrier are as follows:
   A. _______________ [Instructions: set forth in detail any additional responsibilities of
      Carrier]


4. Commission: Carrier will pay to Broker referral fees for _______________ [Instructions:
   insert qualification for paying commission]. The following commission structure will
   apply:
   A. Carrier shall pay Broker a commission of _______________% [Instructions: Insert
       percentage number] of the amount Carrier receives from a client referred by Broker.
   B. A commission will be “earned” once the client’s payment is received by Carrier.
   C. On a _______________ [monthly] [Instructions: Insert relevant timeframe] basis,
       Carrier will provide an accounting to Broker. Within _______________ [Instructions:
       Insert number of days] days of the end of each month.
   D. Carrier shall compensate Broker for the entire life of the relevant client account with
       Carrier, unless this Agreement is earlier terminated.


[Comment: User should edit the commission structure to reflect the specific agreement of
the parties]

5. Independent Contractor Status: Broker expressly acknowledges that Broker will be acting as
   an independent contractor and not as an employee, for all purposes, including payment of
   Social Security withholding tax and all other federal, state and local taxes. The Broker shall
   be free to set its own hours and appointments. Broker shall not hold himself out to the public
   as an employee, agent, partner or representative of Company.


6. Exclusivity: The appointment of Broker hereunder is _______________ [Instructions:
   insert either “exclusive” or “non-exclusive”] [Comment: User should choose either to
   form an exclusive or non-exclusive relationship with the Broker. If User creates a non-
   exclusive agreement, then user should also state “Carrier is not restricted from working
   with other brokers, or directly with clients. Similarly, Broker is not limited from
   working with other carriers.”].


7. Separability and Governing Law: If any portion of this Agreement shall be found to be void
   or unenforceable, it shall in no way affect the validity or enforceability of any other portion
   hereof. This Agreement shall be interpreted according to the laws of the State of
   _______________________ [Instructions: Insert state].

© Copyright 2012 Docstoc Inc.                                                                   3
8. Term and Termination: The term of the Agreement shall be for ____ [one (1)]. [Comment:
   These numbers are not provided for by law, but can be any number the user chooses]
   year and shall automatically renew unless terminated by either party. Either party may
   terminate this Agreement at any time without cause upon thirty-day written notice to the
   other party.


9. Time of essence: Time is declared to be of the essence of this agreement.


10. Force majeure: A party shall not be deemed to have defaulted or failed to perform hereunder
    if that party's inability to perform or default shall have been caused by an event or events
    beyond the control and without the fault of that party, including (without limitation) acts of
    Government, embargoes, fire, flood, explosions, acts of God or a public enemy, strikes, labor
    disputes, vandalism, civil riots or commotions, or the inability to procure necessary raw
    materials, supplies or equipment.




This agreement has been executed by the parties on the day and year first above written.

Broker:

________________________

By      ________________________

Its     ________________________

Date    ________________________



Carrier:

________________________

By      ________________________

Its     ________________________

Date    ________________________




© Copyright 2012 Docstoc Inc.                                                                   4
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Description: This is an agreement between a broker and a freight and shipping company for brokerage services. The broker is engaged to solicit new customers and attract new business opportunities for the freight company. In addition, the agreement provides that the broker will receive a commission fee for any new business the company receives due to the broker’s reference. This document should be used by small businesses that operate as freight or shipping companies and want to hire a broker to market and solicit new customers to the company.