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한국어Commercial brokerage is the process of helping commercial parties find, negotiate, and execute commercial transactions. Trade brokers play an important role in creating value for participants, increasing transparency and reliability, reducing costs and optimizing time when delivering their goods and services to company parties. However, commercial brokerage still has some shortcomings. In the following, Bi Law Firm will share some inadequacies in commercial brokerage activities and recommend solutions.
1. What is a commercial broker?
According to Article 150 of the 2005 Commercial Law, commercial brokerage is a commercial activity whereby a trader acts as an intermediary (referred to as a broker) for parties to buy and sell goods or provide services (referred to as the brokered party) in the negotiation relationship, entering into a contract for the sale of goods and services and receiving remuneration under the brokerage contract. Normal brokerage activities will have the existence of 3 parties including: Broker, seller and buyer.
Entities performing commercial brokerage activities must be traders. Traders include: Individuals engaged in commercial activities, regularly independent with business registration or legally established economic organizations. Individuals and organizations that do not meet the requirements of traders will not be considered as brokers in commercial brokerage activities.
2. Some inadequacies in commercial brokerage activities
Besides the benefits that it brings such as saving time of the brokered parties, easily creating business cooperation relationships through the broker, there are still some commercial brokerage activities that still exist. The disadvantages are as follows:
Firstly, the law does not regulate the form of brokerage contracts. Other commercial intermediary activities such as representing traders, entrusting goods purchase and sale, and commercial agents are all regulated by the 2005 Commercial Law on the form of a contract. For commercial brokerage activities, the form of the contract is not specified in order to facilitate the fast execution of brokerage services. However, there are risks of disputes over brokerage activities. For large brokerage disputes such as brokerage of land use rights, securities brokerage, the regulation on the form of the brokerage contract is extremely necessary. Because when commercial brokerage activities are only verbal and do not have any supporting documents.
Secondly, brokerage activities lack transparency. Some commercial brokerage operations may not guarantee full transparency. Usually, brokerage activities are not documented, which easily leads to a lack of transparency and no control over the information that the broker provides. This may cause disagreements and disputes between the parties involved. Because the information that the broker knows only through the broker, sometimes the broker will provide incorrect information to the parties, in order to negotiate the broker successfully and benefit. remuneration. Therefore, it is easy to lead to disputes and lawsuits for parties in brokerage activities.
Thirdly, determine the method of payment and brokerage remuneration. Although the Commercial Law 2005 stipulates the right to enjoy brokerage remuneration in Article 153. Accordingly, the brokerage remuneration is determined according to the signed brokerage contract or if there is no agreement, it must be determined according to the level there. Remuneration is based on the price of other similar brokerage services under similar conditions, delivery method, delivery time and many other factors. In case, the parties cannot agree on the time to calculate the brokerage fee, how to do it, and how much the fee is, the 2005 Commercial Law does not clearly regulate this issue. Therefore, the Commercial Law needs to be more specific on this issue. In order to limit risk, there are many controversies in determining the brokerage price and when the broker receives remuneration
3. Proposing solutions and perfecting the law in commercial brokerage activities
For the purpose of ensuring the interests of the parties in commercial brokerage activities. Here, The Lux Law Firm will offer some solutions to overcome the above limitations.
Firstly, there should be regulations on the form of brokerage contracts. The Commercial Law 2005 should recognize this issue to guide future brokerage activities, more clearly and transparently. When determining the rights and obligations of the parties in the brokerage contract as well as the responsibilities the parties must undertake, in order to limit risks in brokerage activities. The regulation of brokerage contracts also creates a basis for the court to settle disputes about brokerage activities with legal grounds, contributing to protecting the legitimate interests of brokers.
Secondly, there should be a specific regulation defining the mode of payment and brokerage remuneration. Regulations on when brokers are paid should be clear. For example: Brokers receive remuneration from the time when the brokerage parties enter into a contract. Commercial brokerage activities can only be popularized and used more widely when there is a clear and transparent remuneration system. The determination of the remuneration regime may be based on the transaction value achieved by the parties when there is a broker’s support or a specific value specified in the brokerage contract.
The above are some inadequacies about commercial brokerage activities and solutions, looking forward to receiving comments from readers. Contact Bi Law Firm to discuss more details.
