In Tan vs. Gullas (441 Phil. 622 (2002)), the Supreme Court had occasion to define a broker and distinguish it from an agent, thus:
(One) who is engaged, for others, on a commission, negotiating contracts relative to property with the custody of which he has no concern; the negotiator between the other parties, never acting in his own name but in the name of those who employed him. (A) broker is one whose occupation is to bring the parties together, in matter of trade, commerce or navigation.
An agent receives a commission upon a successful conclusion of a sale. On the other hand, a broker earns his pay merely by bringing the buyer and the seller together, even if no sale is eventually made.
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