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 brokerâ€™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 (â€œAgreementâ€) is made and entered into this
_______________ [Instructions: insert date] by _______________ [Instructions: insert name
of Carrier], (hereinafter â€œCarrierâ€), located at _______________ [Instructions: insert location]
and _______________ [Instructions: insert name of Broker] with its principal offices located
at _______________ [Instructions: insert location] (hereinafter â€œBrokerâ€).
WHEREAS both parties have the legal capacity to enter into this Agreement; and
WHEREAS Carrier desires use Brokerâ€™s services to find customers that can use Carrierâ€™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 Carrierâ€™s instructions and the terms of this Agreement, and thereby
earn commission income.
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
B. Broker shall solicit and obtain qualified customers for Carrier.
C. Broker shall determine Brokerâ€™s method of obtaining clients, provided that the method is
legal and ethical. Broker may utilize Brokerâ€™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
G. Broker shall provide workerâ€™s compensation insurance to all Brokerâ€™s employees and
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. Carrierâ€™s Responsibilities: The responsibilities of Carrier are as follows:
A. _______________ [Instructions: set forth in detail any additional responsibilities of
4. Commission: Carrier will pay to Broker referral fees for _______________ [Instructions:
insert qualification for paying commission]. The following commission structure will
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 â€œearnedâ€ once the clientâ€™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
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 â€œexclusiveâ€ or â€œnon-exclusiveâ€] [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 â€œCarrier is not restricted from working
with other brokers, or directly with clients. Similarly, Broker is not limited from
working with other carriers.â€].
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].
Â© 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
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.
Â© Copyright 2012 Docstoc Inc. 4
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