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- The brokerage contract regulates the brokering of contracts and is set out in Section 652 of the German Civil Code (BGB).
- Brokers only receive commission if a contract is successfully concluded; the amount varies depending on the economic sector.
- Brokers have a duty to inform and must notify the client of material circumstances.
- Management and artist contracts differ fundamentally from brokerage contracts in terms of tasks and remuneration structures.
- There are legal risks for both parties, in particular due to possible claims for damages in the event of incorrect information.
- Digitalization is changing the broker landscape with online platforms and AI technologies and requires adjustments to the legal framework.
- The burden of proof for the success of the brokerage lies with the broker.
Definition and legal basis
The brokerage contract is a central legal institution in service contract law, which is regulated in Section 652 BGB. It describes a contract in which the broker proves or arranges the opportunity to conclude a contract in return for commission. The broker is only remunerated if the main contract is actually concluded. Commission claims are precisely defined by law. The brokerage agreement can be concluded verbally or in writing, although a written agreement is recommended. It is used in various economic sectors such as real estate, insurance and company sales. Case law has developed differentiated principles for the interpretation and implementation of brokerage contracts.
Rights and obligations of the contracting parties
The broker is obliged to undertake his efforts to broker the contract with the diligence of a prudent businessman. He must inform the client of all material circumstances that are significant for the conclusion of the contract. The client shall only owe the broker a commission if the contract is successfully concluded. The amount of the commission is specified in the contract and varies depending on the economic sector. The broker is entitled to remuneration if the main contract is concluded through his mediation. Commission claims can also arise if the contract is not concluded for reasons that lie within the sphere of the client.
Differentiation from management and artist contracts
Management and artist contracts differ fundamentally from broker contracts. While the broker is primarily responsible for brokering the conclusion of contracts, managers and artist representatives take on more comprehensive support tasks. Management contracts typically include strategic advice, career planning and operational support. Artist contracts regulate the comprehensive representation and marketing of artistic performances. These contracts usually establish a continuing obligation with comprehensive representation duties. The brokerage contract, on the other hand, is geared towards one-off brokerage. The remuneration structures differ: brokers receive a performance-based commission, while managers and artists’ representatives often agree fixed remuneration or royalties.
Legal risks and liability aspects
Brokerage contracts entail specific legal risks for both contracting parties. The broker is liable for the accuracy and completeness of the information provided. Incorrect or incomplete information may give rise to claims for damages. The client is obliged to pay the broker the agreed commission. In the event of disputes regarding the commission, the courts will decide according to the principles of good faith. The burden of proof for the success of the brokerage lies with the broker.
Digital transformation and future prospects
Digital platforms and technologies are fundamentally changing the broker landscape. Online brokerage portals and AI-supported matching systems are expanding traditional brokerage services. Blockchain technologies are enabling new forms of contract brokerage. Digitalization increases the transparency and efficiency of brokerage processes. Legal frameworks must continuously adapt to new forms of technology.
