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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."
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
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
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
Legal Services
Business Consulting
Real Estate
Investment Banking
Project Management
Business Development
Recruitment Services
Mergers & Acquisitions
Financial Advisory
Professional Services
Sales & Marketing
Technology Consulting
Legal
Commercial
Business Development
Sales
Finance
Operations
Risk & Compliance
Strategy
Project Management
Corporate Development
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
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