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What does an intermediary agreement mean? Is the intermediary agreement protected by law?
Intermediary agreement, also known as "intermediary service contract". It refers to the agreement that the broker provides the client with the opportunity or introduction to conclude a contract with a third party at the request of the client, and the client must pay the agreed remuneration to the broker. Intermediary contracts established according to law are protected by law. If the intermediary facilitates the establishment of the contract after the signing of the intermediary contract, the client shall pay the intermediary fee.

Legal basis: People's Republic of China (PRC) Contract Law.

Article 465 A lawfully formed contract is protected by law.

A legally established contract is legally binding only on the parties, except as otherwise provided by law.

Article 961 An intermediary contract is a contract in which the intermediary reports to the client the opportunity to conclude a contract or provides media services for concluding a contract, and the client pays the remuneration.

Article 962 The broker shall truthfully report to the principal the matters related to the conclusion of the contract.

If the broker intentionally conceals important facts related to the conclusion of the contract or provides false information, which harms the interests of the client, he shall not ask for payment of remuneration and shall be liable for compensation.

Article 963 Where the broker facilitates the formation of a contract, the principal shall pay the remuneration as agreed. If the remuneration of the broker is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, it shall be reasonably determined according to the services of the broker. Where an intermediary provides media services for concluding a contract, the remuneration of the intermediary shall be borne equally by both parties to the contract.

If the intermediary facilitates the establishment of the contract, the expenses of the intermediary activities shall be borne by the intermediary.

Article 964 Where the broker fails to facilitate the conclusion of the contract, he may not request payment of remuneration; However, customers may be required to pay the necessary fees for intermediary activities as agreed.