The Fee Payment Agreement is a crucial legal document used in New Zealand business operations where regular, structured payments are required between parties. This document is particularly essential when establishing ongoing financial obligations, such as service retainers, subscription payments, or regular professional fees. The agreement must comply with New Zealand contract law, including the Contract and Commercial Law Act 2017, and address GST requirements under the Goods and Services Tax Act 1985. It serves to protect both the fee recipient and the paying party by clearly defining payment terms, schedules, and remedies for default, while providing a robust legal framework for managing regular financial transactions in the New Zealand business context.
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1. Parties: Identification and details of all parties to the agreement, including legal names, addresses, and registration numbers if applicable
2. Background: Context of the agreement, relationship between parties, and purpose of the fee payment arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Fee Structure: Clear outline of the fees, including amounts, calculation methods, and any variations
5. Payment Terms: Payment schedule, due dates, payment methods, and processing details
6. Late Payment and Default: Consequences of late payment, interest charges, and default procedures
7. GST and Taxation: Treatment of GST and other applicable taxes
8. Term and Termination: Duration of the agreement and circumstances for termination
9. Dispute Resolution: Process for resolving disputes related to payments
10. General Provisions: Standard contractual provisions including governing law, notices, and amendments
1. Currency and Exchange Rates: For international payments, specifying currency conversion rules and exchange rate mechanisms
2. Performance Metrics: When fees are tied to performance or service levels, defining measurement criteria
3. Security and Guarantees: When additional payment security or guarantees are required
4. Confidentiality: When fee arrangements contain sensitive commercial information
5. Force Majeure: When external events might affect payment obligations
6. Electronic Payments: Detailed provisions for electronic payment systems and security
7. Third-Party Rights: When payments involve or affect third parties
8. Audit Rights: When regular auditing of fee calculations is required
1. Schedule 1 - Fee Schedule: Detailed breakdown of all fees, rates, and charges
2. Schedule 2 - Payment Procedures: Step-by-step payment processes and requirements
3. Schedule 3 - Bank Account Details: Banking information for payments
4. Schedule 4 - Service Level Metrics: If fees are performance-based, detailed performance criteria and measurements
5. Appendix A - Fee Calculation Examples: Examples showing how various fees are calculated
6. Appendix B - Required Forms: Any forms required for payment processing or reconciliation
Relevant legal definitions
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Relevant Industries
Professional Services
Financial Services
Healthcare
Education
Technology
Construction
Real Estate
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Consulting
Property Management
Software and IT
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Relevant Teams
Finance
Legal
Accounts Receivable
Accounts Payable
Commercial
Operations
Compliance
Treasury
Contract Administration
Credit Control
Relevant Roles
Finance Manager
Accounts Receivable Manager
Chief Financial Officer
Commercial Manager
Contract Administrator
Business Development Manager
Financial Controller
Operations Manager
Legal Counsel
Compliance Officer
Credit Controller
Account Manager
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