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(Adopted and Promulgated by the Second Session of the Ninth National People's
Article 424 Definition of Brokerage Contract
A brokerage contract is a contract whereby the broker presents to the client
an opportunity for entering into a contract or provides the client with intermediary
services in connection with the conclusion thereof, and the client pays the
remuneration.
Article 425 Broker's Obligation to Provide True Information
The broker shall provide true information concerning matters relevant to the
conclusion of the proposed contract.
Where the broker intentionally concealed any material fact or provided false
information in connection with the conclusion of the proposed contract, thereby
harming the client's interests, it may not require payment of any remuneration
and shall be liable for damages.
Article 426 Broker Entitled to Remuneration
Once the broker facilitated the formation of the proposed contract, the client
shall pay the remuneration in accordance with the brokerage contract. Where
remuneration to the broker was not prescribed or clearly prescribed, and cannot
be determined in accordance with Article 61 hereof, it shall be reasonably fixed
in light of the amount of labor expended by the broker. Where the broker facilitated
the formation of the proposed contract by providing intermediary services in
connection therewith, the remuneration paid to the broker shall be equally borne
by parties thereto.
Where the broker facilitated the formation of the proposed contract, the brokerage
expenses shall be borne by itself.
Article 427 Broker Entitled to Reimbursement in Case
of Failure to Conclude Proposed Contract
Where the broker failed to facilitate the formation of the proposed contract,
it may not require payment of remuneration, provided that it may require the
client to reimburse the necessary brokerage expenses incurred
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