You introduced a buyer to a trader, the deal closed, and you were not paid? That is the classic commercial brokerage dispute.
Broker, agent, distributor
| Broker | Commercial agent | Distributor | |
|---|---|---|---|
| Role | Brings parties together; signs for no one | Acts in the principal's name | Buys and resells on his own account |
| Reward | Commission on closing | Agreed commission | Margin |
When is commission earned?
- As a rule, when the deal is concluded because of the broker.
- If the parties bypass the broker after he introduced them, commission remains due if his role is proven.
- Without an agreed rate, trade custom applies.
- Licensed sectors have their own rules; read the Real Estate Brokerage Law.
A good agreement covers
- The deal or products.
- Rate and base, and repeat orders.
- When it is earned and paid.
- Term and post-term deals.
- Confidentiality and non-circumvention.
- Disputes: arbitration or the commercial court.
Prove your role with emails, meeting notes and offers, then claim. Read debt collection.
A commission dispute?
Usus Law Firm drafts brokerage agreements and pursues commissions through commercial litigation, in Riyadh and Tabuk, and advises in English.
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
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