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A Finder's Fee Agreement spells out how someone gets paid for connecting buyers with sellers or helping businesses find valuable opportunities. Under Nigerian contract law, these agreements protect both the finder (often called an intermediary) and the company by clearly stating the reward for successful introductions.

The agreement sets the specific fee amount���usually a percentage of the deal value���and explains exactly what counts as a successful connection. Nigerian business practice typically limits these fees to 5-10% of transaction value, with payment terms that match local banking regulations. The document helps prevent disputes by defining when the finder's role ends and what happens if the deal falls through.

Use a Finder's Fee Agreement when bringing in outside help to locate business opportunities, potential investors, or valuable partnerships in Nigeria. This agreement becomes essential before engaging intermediaries to find buyers for property, source funding for projects, or connect you with specific industry contacts.

The timing is critical���put this agreement in place before the intermediary starts making introductions. Nigerian business law offers limited protection for informal finder arrangements, so documenting the terms upfront prevents costly disputes. Many Nigerian companies use these agreements when expanding into new markets, seeking investors, or during mergers and acquisitions where local knowledge is vital.

• Fixed-Fee Agreements: Set a specific payment amount regardless of deal size, common in property transactions and equipment sourcing
• Percentage-Based Agreements: Calculate fees as 2-10% of final transaction value, typical in investment deals and company sales
• Success-Fee Structures: Payment only upon completed deals, popular in Nigerian merger and acquisition contexts
• Tiered Commission Agreements: Offer varying percentages based on deal size or complexity, used in large-scale business developments
• Hybrid Agreements: Combine upfront retainer with success fees, common when sourcing international partnerships

• Business Owners: Sign agreements when seeking investors, buyers, or strategic partners for their Nigerian companies
• Business Intermediaries: Professional networkers and consultants who connect parties and earn fees for successful introductions
• Corporate Lawyers: Draft and review agreements to ensure compliance with Nigerian business regulations
• Investment Firms: Use these agreements when seeking acquisition targets or investment opportunities
• Real Estate Developers: Engage finders to locate property buyers or secure funding for construction projects
• Industry Specialists: Act as finders in specific sectors like oil and gas, manufacturing, or technology

• Identity Details: Gather full legal names and contact information for both the finder and the company
• Deal Parameters: Define exactly what qualifies as a successful introduction or connection
• Fee Structure: Determine payment amounts, percentages, and any performance tiers that apply
• Timeline Details: Set clear start dates, duration, and deadlines for introductions
• Payment Terms: Specify when and how fees will be paid, following Nigerian banking regulations
• Exclusivity Terms: Decide if the finder has exclusive rights for specific opportunities
• Documentation: List required proof of introductions and deal completion records

• Party Details: Full legal names, addresses, and registration numbers of both finder and company
• Scope Definition: Clear description of services and what constitutes a successful introduction
• Fee Structure: Detailed payment terms, calculation methods, and payment timing
• Duration Clause: Agreement start date, termination conditions, and any renewal terms
• Confidentiality: Protection of business information and trade secrets
• Non-Compete: Restrictions on finder's activities with competitors
• Governing Law: Explicit reference to Nigerian law and jurisdiction
• Dispute Resolution: Clear process for handling disagreements under Nigerian law

A Finder's Fee Agreement differs significantly from a Agency Agreement in several key aspects under Nigerian law. While both involve intermediary relationships, their scope, obligations, and legal implications vary considerably.

• Scope of Authority: Finder's Fee Agreements only cover introductions and connections, while Agency Agreements grant broader powers to negotiate and act on behalf of the principal
• Legal Responsibility: Finders bear minimal liability for deal outcomes, whereas agents have fiduciary duties and can legally bind their principals
• Payment Structure: Finder's fees typically involve one-time payments for successful introductions, while agency relationships often include ongoing commissions or retainer fees
• Duration: Finder arrangements usually end after successful introductions, but agency relationships tend to be longer-term commitments with continuing obligations
• Regulatory Oversight: Agency Agreements face stricter regulatory scrutiny under Nigerian commercial law, requiring specific disclosures and compliance measures