An irrevocable master fee protection agreement (IMFPA) is a legal contract between three parties: the buyer, the seller, and the intermediary. The purpose of this agreement is to protect the intermediaries or agents who help the buyer and seller to finalize a transaction, such as a purchase agreement.

The IMFPA is a binding agreement that ensures the intermediaries receive their commission or fees for their services in the transaction. The agreement stipulates that the fees or commission due to the intermediary are protected, and neither the buyer nor the seller can refuse to pay.

The irrevocable nature of the agreement means that it cannot be canceled or revoked unless all parties involved agree to do so. This ensures the intermediaries receive their rightful compensation.

This type of agreement is commonly used in international trade transactions, especially in situations where parties may not know each other well. Intermediaries such as brokers or agents are used to facilitate the transaction, and the IMFPA ensures that the intermediaries receive compensation for their services, even in cases where one of the parties attempts to avoid payment.

To be valid, an IMFPA must clearly outline the terms and conditions of the agreement, including:

1. The parties involved

2. The nature of the transaction

3. The commission or fees due to the intermediary

4. The irrevocable nature of the agreement

5. The governing law and jurisdiction.

Careful attention should be paid to the language used in the agreement. Any ambiguity or lack of clarity could lead to disputes and legal battles. Therefore, it is crucial to work with a legal professional experienced in drafting IMFPA agreements.

In conclusion, an irrevocable master fee protection agreement is a critical legal tool that ensures intermediaries receive their fees or commission in international trade transactions. It protects their interests and ensures that they`re compensated for their services. If you`re conducting an international transaction, consider using an IMFPA to protect yourself and your intermediary.