Protection of the commission or referral fee due to the Intermediary is a crucial element in a business deal for the one who has arranged it by employing his efforts, time and expertise in finding suitable business alliance and for ensuring fair play leading to advantages and profits for all involved in the transaction. The object of an Irrevocable Master Fee Protection Agreement is to help protect the interests of the Intermediary in a transaction like that.
Massachusetts Irrevocable Master Fee Protection Agreement (IMF PA) is a legally binding contract that establishes the terms and conditions for the payment of fees or commissions related to business transactions in Massachusetts. This agreement acts as a safeguard for parties involved by ensuring that the designated party is duly compensated for their services or contributions in the transaction. The IMF PA typically includes details such as the names and contact information of the parties involved, a description of the underlying transaction, the specified fees or commissions, and the agreed-upon terms and conditions for payment. It also outlines the non-circumvention clause, which prohibits any party from bypassing the fee-paying party to communicate or engage with the other involved parties directly. In Massachusetts, there can be different types of IMF PA based on the nature of the transaction or specific requirements. Some common variations of the IMF PA include: 1. Real Estate Fee Protection Agreement: This type of IMF PA is specifically designed for real estate transactions in Massachusetts. It covers fees or commissions related to the sale, lease, or acquisition of properties in the state. 2. Financial Transaction Fee Protection Agreement: This IMF PA variant applies to financial transactions such as mergers, acquisitions, or investments. It ensures that the designated party receives their agreed-upon fees or commissions for facilitating and/or participating in the transaction. 3. International Trade Fee Protection Agreement: For parties involved in international trade, this type of IMF PA outlines the payment terms and conditions for fees or commissions related to import/export deals, international distributorships, or joint ventures. Additionally, a Non-Circumvention Non-Disclosure Agreement (NCAA) is often incorporated into the IMF PA to provide further protection to the fee-paying party. The NCAA prevents any party from sharing sensitive information obtained during the transaction with third parties and ensures that all communications and future transactions involving the disclosed parties go through the designated fee-paying party. The primary objective of a Massachusetts IMF PA and NCAA is to establish a clear framework for fee payment, prevent unauthorized bypassing of designated parties, maintain confidentiality, and protect the interests of all parties involved in business transactions within the state.
