A business broker is a person or firm engaged in the business of enabling other businesses to get sold.
Business brokers typically value the business, advertise it for sale, handle the initial
discussions with prospective buyers and assist the owner of the business in selling it. They are paid either a fixed fee or a percentage of the sale price. Buyers sometimes retain a business broker to find them a particular kind of business.
In the United States, licensing of business brokers varies by state, with some states
requiring licenses, some not. Some states require licenses if the broker is commissioned but not if the broker works on an hourly fee basis. State rules also vary about recognizing licensees across state lines, especially for interstate types of businesses like national franchises. Some states require either a broker license or law license to even advise a business owner on issues of sale, terms of sale, or introduction of a buyer to a seller for a fee.
This form is a general Non-Disclosure and Commission Agreement Between a Business Broker and a Prospective Buyer.
The Hawaii Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that outlines the terms and conditions regarding the non-disclosure of confidential information and the payment of commissions between a business broker and a potential buyer in Hawaii. This agreement is designed to protect the interests of both parties involved in a business transaction. The purpose of this agreement is to maintain confidentiality and to ensure that any proprietary or confidential information shared during the negotiation process remains private. It prevents the prospective buyer from disclosing any sensitive information about the business being sold to third parties without the express permission of the business broker. The agreement also encompasses the commission structure and payment terms. It outlines the amount or percentage of commission that the broker is entitled to upon the successful completion of the sale. The specific terms of commission payment, such as timing and method of payment, are typically included as well. It is essential to note that different types of Hawaii Nondisclosure and Commission Agreements may exist based on specific circumstances. For example, there could be variations in agreements between business brokers and prospective buyers depending on the type of business being sold (e.g., retail, service-oriented, manufacturing, etc.), the complexity of the transaction, or whether it involves real estate. Some additional elements that may be included in the agreement are: 1. Definitions: This section provides clear definitions for terms used throughout the agreement, ensuring mutual understanding between the parties involved. 2. Confidentiality Obligations: The agreement establishes the obligations of the prospective buyer to maintain the confidentiality of any information shared during the negotiation process. It may include provisions requiring the return or destruction of confidential materials once the transaction concludes. 3. Non-Circumvention Clause: This clause prohibits the prospect from circumventing the broker's services to negotiate directly with the seller without the broker's involvement. It protects the broker's right to receive the agreed-upon commission. 4. Term and Termination: The agreement specifies the duration of the agreement and under what circumstances it can be terminated, such as completion of the sale, expiration of the agreed term, or a breach of contract by either party. 5. Governing Law and Jurisdiction: This section identifies the applicable laws governing the agreement and which jurisdiction will handle any disputes that may arise. It is important to note that this description provides a general understanding of a Hawaii Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer. However, the specific terms and conditions may vary depending on the agreement's drafting and the particular business transaction involved. Therefore, it is crucial for both parties to consult with legal professionals to tailor the agreement to their unique circumstances and ensure compliance with Hawaii state laws and regulations.
