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What is intermediary behavior?

The so-called intermediary refers to a system in which the client reports the opportunity to conclude a contract or provides intermediary services for concluding a contract, and the client pays remuneration. Brokerage, in essence, is a form of business, a brokerage activity that involves matchmaking, recommending mediators, and prompting buyers and sellers to close deals.

Intermediary behavior occurs in the following two situations:

① The client takes the initiative to find an intermediary. For example, A has a house to rent, and he finds Company B as a house leasing agency. Company B finds a suitable candidate for him among the renters registered by his company - C. C is the client of the house seeking rent. . If A and C sign a house rental contract, Company B charges an agency fee (commission). According to my country's current trading practices for such intermediary contracts, the commission is generally paid by the renter.

②The intermediary takes the initiative to find the client. Intermediaries are often well-informed. For example, A knows that something is for sale in a certain place, but B who urgently needs to buy it does not know. A reports the relevant information to B and provides media services for B to conclude a contract so that B can do what he wants. The items he needs were purchased at a certain place, and B paid a certain amount of commission to A.

The above two intermediary behaviors are based on delegation. In the first situation, A and C are both clients of Company B. In the second situation, although A found B first, B eventually became A's client and B paid the commission to it.

An intermediary is a person who specializes in intermediary brokerage activities and receives remuneration from it, that is, an intermediary who conducts civil legal actions, reports information opportunities, or provides media contact between the client and a third party.

There are two views on whether intermediaries must have special business qualifications: one is that "intermediaries can only be legal persons or citizens engaged in intermediary business that have been registered and approved by relevant state agencies" (see "China Interpretation of the Contract Law of the People's Republic of China, page 594, Law Press, 1999 edition). There is also a view that "the subject of an intermediary contract has no particularity, and both legal persons and citizens can become intermediaries in an intermediary contract" (see page 331 of "New Treatise on Contract Law", China University of Political Science and Law Press, 1997 edition ). Judging from the current actual situation, companies that specialize in intermediary services (intermediary business) need to put forward special requirements for their qualifications, that is, they must meet the conditions of a legal person and be registered before they can operate. For legal persons or citizens engaged in other businesses, if they facilitate transactions between others and their behavior does not violate the mandatory provisions of the law, it should also be considered a legal intermediary behavior and they can receive the agreed remuneration.