The Sourcing Fee Agreement is essential for businesses operating in Singapore's dynamic commercial environment who require professional sourcing services. This document establishes the commercial and legal framework for engaging sourcing agents or companies, detailing compensation structures, performance expectations, and service deliverables. It's particularly relevant for cross-border transactions where Singapore's robust legal framework provides certainty and enforceability. The agreement typically includes specific provisions about fee calculations, payment triggers, and success metrics, ensuring clarity in the commercial relationship between parties.
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Key Requirements PROMPT example:
Sourcing Fee Agreement
"Need a Sourcing Fee Agreement for my Singapore manufacturing company to engage a sourcing agent in Vietnam for raw materials, with a 5% success fee structure and initial term of 12 months starting January 2025."
1. Parties: Identification of contracting parties with full legal names and addresses
2. Background: Context and purpose of the sourcing arrangement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of sourcing services to be provided
5. Fee Structure: Calculation method and payment terms for sourcing fees
6. Payment Terms: Timeline and method of payment
7. Term and Termination: Duration of agreement and termination provisions
8. Governing Law: Specification of Singapore law as governing law
1. Exclusivity: Terms defining exclusive arrangements between parties and any territorial restrictions
2. Performance Metrics: Specific KPIs and performance standards for measuring success of sourcing services
3. Confidentiality: Provisions for protecting confidential information shared during the sourcing process
4. Force Majeure: Provisions addressing unforeseen circumstances that may affect performance of services
1. Schedule 1 - Service Description: Detailed scope of sourcing services including specific deliverables and timelines
2. Schedule 2 - Fee Calculation: Detailed breakdown of fee structure, calculation methodology and payment milestones
3. Schedule 3 - Performance Metrics: Specific KPIs and measurement criteria for evaluating service performance
4. Appendix A - Contact Details: List of key contact persons and their details for both parties
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