The Finder's Fee Agreement serves as a crucial document for businesses operating in India who wish to formalize arrangements with intermediaries who can facilitate valuable connections or opportunities. This agreement type is particularly important in the Indian business context, where relationship-based introductions are common but need to be properly documented for legal and tax purposes. The document addresses key aspects such as the scope of permitted introduction activities, compensation structures, and compliance with Indian regulations including the Indian Contract Act, GST requirements, and relevant industry-specific regulations. A well-structured Finder's Fee Agreement helps prevent future disputes by clearly defining what constitutes a successful introduction, when fees become payable, and how they should be processed, while ensuring compliance with all applicable Indian laws and regulations.
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1. Parties: Identifies and provides full details of the parties entering into the agreement - the Principal/Company and the Finder
2. Background: Sets out the context of the agreement, including the Principal's business and need for the Finder's services
3. Definitions: Defines key terms used throughout the agreement, including 'Successful Introduction', 'Qualified Lead', and 'Finder's Fee'
4. Scope of Services: Clearly outlines what the Finder is expected to do and not do, including the parameters of acceptable introductions
5. Fee Structure: Details the amount or percentage of the Finder's Fee and when it becomes payable
6. Payment Terms: Specifies payment timing, method, and any conditions that must be met before payment is due
7. Term and Termination: Defines the duration of the agreement and circumstances under which it can be terminated
8. Representations and Warranties: States the promises and assurances made by both parties
9. Confidentiality: Establishes obligations regarding confidential information shared during the engagement
10. Governing Law: Specifies that Indian law governs the agreement and outlines jurisdiction for disputes
1. Non-Compete: Include when the Finder needs to be restricted from working with competitors
2. Non-Solicitation: Include when the Finder should be prevented from soliciting the Principal's employees or clients
3. Exclusivity: Include when the Finder is granted exclusive rights for certain types of introductions or territories
4. International Payments: Include when the agreement involves cross-border payments and FEMA compliance
5. Dispute Resolution: Include when specific arbitration or mediation procedures are desired
6. Force Majeure: Include when protection against unforeseen circumstances is needed
7. Assignment: Include when transfer rights need to be specifically addressed
8. Indemnification: Include when specific indemnity provisions are needed beyond standard protections
1. Schedule A - Fee Calculation: Detailed breakdown of how fees are calculated, including any sliding scales or thresholds
2. Schedule B - Target Introduction Criteria: Specific criteria that qualify an introduction as valid for fee payment
3. Schedule C - Reporting Template: Standard format for reporting introductions and tracking progress
4. Schedule D - Excluded Contacts: List of existing contacts or relationships excluded from the fee arrangement
5. Appendix 1 - KYC Documents: Required documentation for compliance with Indian regulations
6. Appendix 2 - Tax Forms: Necessary tax forms and declarations required under Indian law
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Construction
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Relevant Teams
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Finance
Business Development
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Strategy
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Relevant Roles
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