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Contingency Contract for New Zealand

Contingency Contract Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes a conditional arrangement where payment, performance, or other obligations are contingent upon specific events or outcomes. The document details the precise conditions that trigger obligations, payment structures, performance criteria, and reporting requirements while ensuring compliance with New Zealand contract law, including the Contract and Commercial Law Act 2017. It includes provisions for dispute resolution, termination conditions, and mechanisms for verifying when contingent conditions have been met.

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Contingency Contract

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What is a Contingency Contract?

The Contingency Contract is a specialized agreement used in New Zealand business contexts where parties wish to create legally binding obligations that are triggered by specific events or achievements. This document type is particularly valuable when parties want to align compensation with outcomes, such as success fees, commission-based arrangements, or performance-dependent payments. The agreement must comply with New Zealand contract law, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant industry-specific legislation. It typically includes detailed definitions of triggering events, measurement criteria, payment calculations, and verification procedures. The document is commonly used in professional services, real estate transactions, business consulting, and other sectors where payment or performance is tied to specific outcomes or milestones.

What sections should be included in a Contingency Contract?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background: Sets out the context and purpose of the agreement, including why a contingency arrangement is being entered into

3. Definitions: Defines key terms used throughout the agreement, particularly focusing on terms related to contingent events and success criteria

4. Scope of Services: Detailed description of the services or actions to be performed under the contract

5. Contingent Events: Clearly defines the specific events or conditions that must occur for the contingent obligations to become active

6. Payment Terms: Specifies the payment structure, including how fees are calculated based on contingent events and when they become payable

7. Performance Criteria: Establishes measurable criteria for determining whether contingent conditions have been met

8. Timing and Deadlines: Sets out any relevant timeframes for both performance and the occurrence of contingent events

9. Reporting and Communication: Details how parties will communicate progress and notify each other of contingent events

10. Termination: Specifies circumstances under which the agreement can be terminated and the consequences

11. Dispute Resolution: Outlines the process for resolving disputes about whether contingent events have occurred

12. General Provisions: Standard contract clauses including governing law, entire agreement, and amendment procedures

What sections are optional to include in a Contingency Contract?

1. Success Fee Structure: Used when the contingency includes bonus payments or variable fee structures based on different levels of success

2. Third Party Obligations: Include when the contingent events depend on or involve third party actions or approval

3. Insurance and Indemnity: Required when the contingent services involve significant risks or professional liability

4. Intellectual Property Rights: Include when the services might result in creation of intellectual property

5. Confidentiality: Required when sensitive information will be shared during the contract performance

6. Non-Competition: Include when protecting against competitive activities is relevant to the contingent arrangement

7. Force Majeure: Include when external events could impact the ability to achieve contingent conditions

What schedules should be included in a Contingency Contract?

1. Schedule 1: Detailed Service Specifications: Detailed breakdown of services to be provided and specific deliverables

2. Schedule 2: Fee Calculation Methodology: Detailed formula or methodology for calculating contingent fees or payments

3. Schedule 3: Success Criteria Matrix: Detailed matrix of success criteria and corresponding payment levels

4. Schedule 4: Timeline and Milestones: Detailed project timeline including key dates and contingent event deadlines

5. Schedule 5: Required Documentation: List of documents required to evidence achievement of contingent conditions

6. Appendix A: Relevant Certificates and Licenses: Copies of any required professional certificates or licenses

7. Appendix B: Communication Protocol: Detailed procedures for reporting and communicating about contingent events

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 | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Legal Services

Real Estate

Professional Services

Management Consulting

Business Advisory

Construction

Project Management

Financial Services

Sales and Marketing

Business Development

Relevant Teams

Legal

Commercial

Operations

Finance

Sales

Business Development

Risk and Compliance

Procurement

Contract Administration

Project Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Real Estate Agent

Sales Director

Project Manager

Procurement Manager

Commercial Director

Operations Manager

Risk Manager

Compliance Officer

Managing Director

Chief Financial Officer

Business Consultant

Performance Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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