Document background
The Contingency Agreement is utilized when parties wish to establish a performance-based payment structure under Danish law, where the service provider's compensation is contingent upon achieving specific, predetermined outcomes. This document is particularly relevant for business advisory, consulting, and project management services, where success can be objectively measured. It addresses key aspects including success criteria definition, payment calculations, service provider obligations, and client responsibilities, while ensuring compliance with Danish regulatory requirements. The agreement is structured to provide clear triggers for payment obligations while protecting both parties' interests through detailed performance metrics and reporting requirements. Given Denmark's conservative approach to contingency fee arrangements, particularly in legal services, this agreement template is carefully designed to operate within permitted business contexts and comply with relevant Danish legislation and commercial practices.
