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Finder's Fee Commission Agreement Template for England and Wales

A Finder's Fee Commission Agreement is a legally binding contract governed by English and Welsh law that establishes the terms under which an intermediary (finder) will be compensated for successfully introducing business opportunities, clients, or deals to the principal. The agreement details commission structures, payment terms, scope of services, and compliance requirements, particularly concerning financial services regulations, anti-money laundering, and data protection laws. It provides protection for both parties by clearly defining rights, obligations, and the circumstances under which commission becomes payable.

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What is a Finder's Fee Commission Agreement?

The Finder's Fee Commission Agreement is essential when businesses or individuals wish to formally engage intermediaries to source opportunities or introduce potential clients/partners. This agreement, governed by English and Welsh law, establishes clear parameters for commission payments, protecting both the principal and the finder. It addresses key aspects such as exclusivity, payment triggers, and regulatory compliance, particularly relevant in regulated sectors. The document is crucial for maintaining transparency and avoiding future disputes about commission entitlements, while ensuring compliance with relevant legislation including the Financial Services and Markets Act 2000 where applicable.

What sections should be included in a Finder's Fee Commission Agreement?

1. Parties: Identifies and defines the contracting parties - the principal and the finder

2. Background: Sets out the context of the agreement, including the principal's business and the finder's role

3. Definitions: Defines key terms including 'Introduction', 'Successful Transaction', 'Commission', and 'Target'

4. Scope of Services: Details the finder's obligations and the specific services to be provided

5. Commission Structure: Specifies fee amounts, calculation methods, and triggers for commission payments

6. Payment Terms: Details when and how payments will be made, including invoicing requirements

7. Term and Termination: Specifies the duration of the agreement and circumstances for termination

8. Confidentiality: Sets out obligations regarding confidential information and trade secrets

9. Governing Law: Specifies that the agreement is governed by English and Welsh law

What sections are optional to include in a Finder's Fee Commission Agreement?

1. Exclusivity: Used when the finder has exclusive rights in specific territories or sectors

2. Non-Circumvention: Prevents direct dealings that bypass the finder for introduced relationships

3. Regulatory Compliance: Specific provisions for compliance with FSMA and other regulatory requirements

4. Data Protection: Provisions for handling personal data in accordance with UK GDPR

5. Anti-Bribery Compliance: Specific provisions ensuring compliance with the Bribery Act 2010

What schedules should be included in a Finder's Fee Commission Agreement?

1. Commission Calculation Schedule: Detailed breakdown of commission calculations with examples

2. Territory Schedule: Definition of geographical areas or sectors covered by the agreement

3. Service Level Requirements: Specific performance metrics and requirements for the finder

4. Compliance Requirements: Detailed regulatory compliance obligations and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Sector

Sales

Cost

Free to use

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