Fixed Fee Agreement

Fixed Fee Agreement Template for Denmark

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Document background

The Fixed Fee Agreement is designed for use in the Danish market where parties wish to establish a clear, predetermined price for specific services or deliverables. This document type is particularly suitable when the scope of work can be clearly defined and quantified, allowing for upfront pricing rather than time-based billing. It includes essential provisions required under Danish law, such as specific payment terms, delivery conditions, and dispute resolution mechanisms. The agreement is commonly used for professional services, consulting engagements, development projects, and other scenarios where budget certainty is crucial. The document helps prevent scope creep and payment disputes by clearly outlining deliverables, acceptance criteria, and payment milestones, while ensuring compliance with Danish contractual requirements and business practices.

Suggested Sections

1. Parties: Identification of the contracting parties with full legal names, registration numbers, and addresses

2. Background: Context of the agreement and general purpose of the fixed fee arrangement

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of the services to be provided under the fixed fee arrangement

5. Fixed Fee and Payment Terms: Specification of the fixed fee amount, payment schedule, and invoicing requirements including VAT considerations

6. Timeline and Delivery: Project timeline, milestones, and delivery schedule

7. Service Provider's Obligations: Key responsibilities and commitments of the service provider

8. Client's Obligations: Key responsibilities and commitments of the client

9. Acceptance Criteria: Criteria for accepting deliverables and services

10. Confidentiality: Obligations regarding confidential information

11. Intellectual Property Rights: Ownership and rights related to work products and pre-existing materials

12. Liability and Indemnification: Limitations of liability and indemnification obligations

13. Term and Termination: Duration of agreement and termination provisions

14. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Change Management: Procedures for handling changes to scope or requirements - include when the services are complex or likely to evolve

2. Force Majeure: Provisions for unforeseeable circumstances - particularly relevant for longer-term agreements

3. Insurance: Insurance requirements - include when services involve significant risks or regulatory requirements

4. Data Protection: GDPR and data processing provisions - include when personal data will be processed

5. Non-Competition: Restrictions on competitive activities - include when sharing sensitive business information or methods

6. Assignment and Subcontracting: Rights to assign or subcontract - include when relevant to service delivery model

7. Warranty: Specific warranties for services - include when quality guarantees are important to the client

8. Service Levels: Specific service level requirements - include when performance metrics are crucial

Suggested Schedules

1. Schedule 1 - Detailed Service Description: Comprehensive description of services, methodologies, and deliverables

2. Schedule 2 - Fee Breakdown: Detailed breakdown of the fixed fee, including any assumptions and exclusions

3. Schedule 3 - Project Timeline: Detailed project schedule, milestones, and delivery dates

4. Schedule 4 - Key Personnel: List of key team members and their roles (if applicable)

5. Schedule 5 - Technical Requirements: Technical specifications or requirements (if applicable)

6. Appendix A - Service Level Agreement: Detailed service levels and performance metrics (if applicable)

7. Appendix B - Change Request Template: Standard form for requesting and documenting changes

8. Appendix C - Acceptance Test Criteria: Detailed acceptance testing procedures and criteria

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