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Legal Definitions - middleman
Definition of middleman
A middleman refers to an individual or entity that acts as an intermediary, facilitating a connection or transaction between two other parties. This role often involves purchasing goods or services from one party and then selling or distributing them to another, but it can also involve simply connecting parties without taking ownership of the goods or services themselves.
Example 1: A Real Estate Agent
Imagine a homeowner who wants to sell their house and a potential buyer actively searching for a new home. A real estate agent steps in as the middleman. The agent connects the seller with potential buyers, markets the property, handles negotiations, and manages the complex paperwork involved in the sale. The agent does not own the house, nor do they buy it from the seller to sell it to the buyer; instead, they facilitate the transaction directly between the two parties.
Example 2: An Online Ride-Sharing Service
Consider a person needing a ride across town and a driver available to provide transportation. An online ride-sharing service acts as the middleman. The service connects the passenger with an available driver through its application, processes the payment, and provides a platform for communication and coordination. The ride-sharing company does not own the vehicles or employ the drivers in a traditional sense, nor does it directly provide the ride itself; it simply connects those who need a ride with those who can provide one.
Example 3: A Talent Agent
Suppose a musician is looking for performance opportunities, and a venue is seeking artists to book for their events. A talent agent serves as the middleman. The agent represents the musician, actively seeking out and negotiating performance contracts with various venues, festivals, or producers. The agent does not perform the music or own the venue, but they bridge the gap between the artist and the performance opportunity, facilitating the engagement for both parties.
Simple Definition
A middleman is an intermediary or agent who operates between two parties. This term commonly refers to a dealer, such as a wholesaler, who buys products from producers and then sells them to retailers or directly to consumers.