I am brokering a deal between 2 companies, how do I protect getting my commission?

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I am brokering a deal between 2 companies, how do I protect getting my commission?

For example, Company A is giving me the product per a unit at a price of $8, and I will sell to Company B for $10. I make $2 on each unit sold. How do I protect myself between both the companies so they do not go directly with each other?

Asked on February 11, 2014 under Business Law, California

Answers:

Brook Miscoski / Hurr Law Office PC

Answered 7 years ago | Contributor

I represent brokers based out of Texas. What you want is a noncircumvent provision in your brokerage contract. There are many ways to do this. One way is to be Company A's sales agent to the customer and that orders for the product by that customer will result in a commission to you, and to make the agreement for at least a certain amount of time. Of course, if you are buying and reselling, you aren't exactly just a broker, and the relationship you're describing could have additionally complications. You should sit down with an attorney in California who can take the time to ask questions and understand your business more in-depth. 


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