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Contingency Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Contingency Agreement

"I need a Contingency Agreement for a Hong Kong-based business consultancy service where payment is triggered by successful completion of a corporate restructuring project, with a target completion date of March 2025 and success fees calculated as 5% of cost savings achieved."

Document background
This Contingency Agreement template is designed for use in Hong Kong's business environment where parties wish to structure their commercial relationship around performance-based compensation. It is particularly suitable for professional service arrangements where payment is contingent upon achieving specific outcomes, such as successful business transactions, meeting defined targets, or delivering particular results. The document incorporates Hong Kong legal requirements and business practices, ensuring compliance with local regulations while providing flexibility to accommodate various business scenarios. It includes essential provisions for defining success criteria, payment triggers, risk allocation, and dispute resolution mechanisms, making it suitable for both straightforward and complex contingent payment arrangements. The agreement can be customized to address specific industry requirements while maintaining compliance with Hong Kong's legal framework regarding contingent fee arrangements.
Suggested Sections

1. Parties: Identifies and defines all parties to the agreement with their full legal names, addresses, and any relevant registration numbers

2. Background: Sets out the context of the agreement and the general intention of the parties to enter into a contingency-based arrangement

3. Definitions: Defines key terms used throughout the agreement, including specific triggers and contingent events

4. Scope of Services: Detailed description of the services to be provided under the agreement

5. Contingent Event: Clear definition of the event or conditions that must occur for the payment obligation to arise

6. Payment Terms: Detailed structure of the contingent payments, including calculation methods, percentages, and timing

7. Obligations of Service Provider: Specific duties and responsibilities of the party providing the service

8. Obligations of Client: Specific duties and responsibilities of the client, including provision of information and cooperation

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Provisions regarding the handling of confidential information

11. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for dispute resolution

12. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and notices

Optional Sections

1. Success Criteria: Detailed metrics or benchmarks for measuring success, used when the contingent event needs specific measurement criteria

2. Partial Success Provisions: Terms dealing with partial achievement of goals, used when the contingency can have varying degrees of success

3. Third Party Rights: Provisions regarding the rights of third parties under the Contract (Rights of Third Parties) Ordinance, used when third parties might have enforcement rights

4. Insurance: Insurance requirements and obligations, used when the services involve significant risks

5. Intellectual Property: IP rights and obligations, used when the services involve creation or use of intellectual property

6. Non-Competition: Restrictions on competitive activities, used when protecting business interests is crucial

7. Force Majeure: Provisions for unforeseeable circumstances, used when external events could significantly impact the contingent event

Suggested Schedules

1. Schedule 1 - Service Description: Detailed breakdown of services to be provided

2. Schedule 2 - Fee Structure: Detailed calculation methodology for contingent fees including examples

3. Schedule 3 - Success Metrics: Specific metrics and measurement methods for determining success

4. Schedule 4 - Required Information: List of information and documents required from the client

5. Schedule 5 - Key Personnel: List of key personnel involved in providing the services

6. Appendix A - Reporting Template: Standard format for progress reporting

7. Appendix B - Communication Protocol: Agreed procedures for communications between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Relevant Industries

Legal Services

Business Consulting

Real Estate

Investment Banking

Project Management

Business Development

Recruitment Services

Mergers & Acquisitions

Financial Advisory

Professional Services

Sales & Marketing

Technology Consulting

Relevant Teams

Legal

Commercial

Business Development

Sales

Finance

Operations

Risk & Compliance

Strategy

Project Management

Corporate Development

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Sales Director

Consultant

Project Manager

Financial Advisor

Managing Director

Chief Financial Officer

Operations Manager

Commercial Director

Risk Manager

Compliance Officer

Business Analyst

Strategy Consultant

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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