The Contingency Agreement is utilized when parties wish to establish a performance-based compensation structure where payment is conditional upon achieving specific results or milestones. This document type is particularly relevant in Switzerland, where it must comply with the Swiss Code of Obligations and applicable professional regulations. The agreement details the conditions triggering payment obligations, calculation methods for contingent fees, and specific performance metrics. It's commonly used in professional services, business transactions, and advisory relationships where success-based compensation aligns interests between service providers and clients. The document includes necessary provisions to ensure enforceability under Swiss law while providing flexibility to accommodate various business arrangements where contingent payment structures are appropriate.
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1. Parties: Identification and details of the contracting parties
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the services to be provided
5. Contingency Terms: Specific conditions that must be met for the fee to become payable
6. Fee Structure: Detailed breakdown of the contingency fee calculation method and percentages
7. Payment Terms: Timing and method of payment once contingency conditions are met
8. Obligations of Service Provider: Specific duties and responsibilities of the party providing the service
9. Client Obligations: Responsibilities and commitments of the client
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Confidentiality: Obligations regarding confidential information
12. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes
13. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties
1. Success Criteria: Detailed metrics for measuring success, used when contingency is based on specific performance indicators
2. Third Party Rights: Required when third parties may have rights or obligations under the agreement
3. Insurance: Insurance requirements, particularly relevant for high-value contingency arrangements
4. Non-Competition: Restrictions on competitive activities, if relevant to the service arrangement
5. Assignment: Terms regarding the transfer of rights and obligations, if assignment possibilities need to be addressed
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant for long-term arrangements
7. Data Protection: Required when personal data processing is involved in the service provision
8. Intellectual Property: Necessary when services involve creation or use of intellectual property
1. Schedule 1 - Service Description: Detailed specification of services to be provided
2. Schedule 2 - Fee Calculation: Detailed methodology for calculating contingency fees
3. Schedule 3 - Success Metrics: Specific criteria and measurements for determining success
4. Schedule 4 - Required Documentation: List of documents required to evidence achievement of contingency conditions
5. Schedule 5 - Key Personnel: Details of key individuals involved in service delivery
6. Appendix A - Reporting Template: Standard format for progress reporting
7. Appendix B - Communication Protocol: Procedures for formal communications between parties
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Relevant legal definitions
Clauses
Relevant Industries
Legal Services
Business Consulting
Investment Services
Real Estate
Recruitment
Sales and Marketing
Professional Sports
Entertainment
Financial Services
Business Brokerage
Executive Search
Management Consulting
Relevant Teams
Legal
Compliance
Business Development
Sales
Human Resources
Finance
Commercial Operations
Professional Services
Risk Management
Contract Administration
Relevant Roles
Legal Counsel
Contract Manager
Business Development Manager
Sales Director
Recruitment Consultant
Investment Advisor
Business Broker
Managing Partner
Chief Financial Officer
Chief Legal Officer
Commercial Director
Professional Services Manager
HR Director
Compliance Officer
Business Development Executive
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