Commercial Law
Provisions on the Brokerage Contract in Jordanian Law
This summary outlines the legal framework of the brokerage contract under Jordanian law, including the statutory definition, contract characteristics, and parties’ obligations. It also explains practical effects of the contract’s commercial classification, evidence rules and modes of termination.
Courts and procedure
Commercial Law
Updated: 17 July 2023
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This summary outlines the legal framework of the brokerage contract under Jordanian law, including the statutory definition, contract characteristics, and parties’ obligations. It also explains practical effects of the contract’s commercial classification, evidence rules and modes of termination.
Key points
- Definition and Scope of the Contract
- Legal Features and Practical Effects
- Commercial Nature and Legal Consequences
Useful for: Useful for initial reading and identifying questions that may need legal review.
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Definition and Scope of the Contract
Under Jordanian law the brokerage contract is the undertaking by which a broker directs a client to an opportunity or acts as intermediary in negotiations for remuneration (Art. 99/1, Commercial Law). In practice this covers locating a prospective counterparty or negotiating with a specified person. The contract may be concluded orally or in writing, although a written record is practically advisable to facilitate proof.
Legal Features and Practical Effects
The brokerage contract is consensual, bilateral, reciprocal, aleatory and personal. Practically, the broker must seek or negotiate with a prospective counterparty while the client must pay the commission upon the broker’s entitlement. Because of its personal nature, the contract terminates on death or loss of capacity of a party unless otherwise agreed, and the broker’s independence limits the client’s supervisory control over performance.
Commercial Nature and Legal Consequences
The legislator classifies brokerage as a commercial activity by nature (Art. 6/1(h), Commercial Law), so the broker is treated as a trader regardless of whether the activity is habitual. However, the contract may remain civil with respect to the principal if the principal is not a trader or the underlying transaction is non‑commercial. This distinction affects applicable evidence rules, liabilities and whether commercial or civil rules govern the relationship.
Proof, Termination and Practical Procedures
Practically, when the contract is commercial for the broker it may be proved by commercial evidence methods; if it is civil for the client, civilproof rules apply. The broker’s commission is typically due upon successful bringing together of the parties or fulfillment of the agreed task. Termination may occur by expiry, impossibility of performance, rescission for breach (after notice and reasonable cure period), or death/loss of capacity. Procedurally, parties should document core terms (fee, term, scope) and verify any registration or licensing requirements under relevant regulations.
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Notice: The above is a concise educational summary based on a published source linked from this page. It does not substitute the original legal texts or advice from a licensed attorney; verify the applicable statutes, amendments, deadlines and procedures, and consult a qualified lawyer before taking any practical steps.
Frequently asked questions
Definition and Scope of the Contract?
Under Jordanian law the brokerage contract is the undertaking by which a broker directs a client to an opportunity or acts as intermediary in negotiations for remuneration (Art. 99/1, Commercial Law). In practice this covers locating a prospective counterparty or negotiating with a specified person. The contract may be concluded orally or in writing, although a written record is practically advisable to facilitate proof.
Legal Features and Practical Effects?
The brokerage contract is consensual, bilateral, reciprocal, aleatory and personal. Practically, the broker must seek or negotiate with a prospective counterparty while the client must pay the commission upon the broker’s entitlement. Because of its personal nature, the contract terminates on death or loss of capacity of a party unless otherwise agreed, and the broker’s independence limits the client’s supervisory control over performance.
Commercial Nature and Legal Consequences?
The legislator classifies brokerage as a commercial activity by nature (Art. 6/1(h), Commercial Law), so the broker is treated as a trader regardless of whether the activity is habitual. However, the contract may remain civil with respect to the principal if the principal is not a trader or the underlying transaction is non‑commercial. This distinction affects applicable evidence rules, liabilities and whether commercial or civil rules govern the relationship.
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