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Finder's Fee Commission Agreement Template for Pakistan

A comprehensive legal agreement governed by Pakistani law that establishes the terms and conditions under which a finder will receive commission for successfully introducing business opportunities or potential deals to the principal. The agreement details the scope of the finder's services, commission structure, payment terms, and obligations of both parties while ensuring compliance with Pakistani contract law and financial regulations. It includes specific provisions for qualifying introductions, commission calculations, payment triggers, and necessary safeguards to protect both parties' interests in the context of Pakistani business practices and legal requirements.

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What is a Finder's Fee Commission Agreement?

The Finder's Fee Commission Agreement is essential for businesses operating in Pakistan that rely on external parties to source business opportunities, potential clients, or strategic partnerships. This document becomes necessary when companies wish to formalize arrangements with individuals or entities who can facilitate valuable business connections while ensuring compliance with Pakistani legal requirements. The agreement typically outlines the specific criteria for qualifying introductions, commission structures, and payment terms, providing clarity and legal protection for both the principal and the finder. It's particularly relevant in today's Pakistani business environment where networking and business intermediary services play a crucial role in facilitating commercial transactions. The agreement helps prevent future disputes by clearly documenting the terms of engagement, commission entitlements, and the scope of the finder's services, all while adhering to Pakistani contract law and financial regulations.

What sections should be included in a Finder's Fee Commission Agreement?

1. Parties: Identifies and provides full details of the principal and the finder, including legal names, addresses, and registration details if applicable

2. Background: Contains recitals explaining the context of the agreement and the principal's need for finder's services

3. Definitions: Defines key terms used throughout the agreement, including 'Successful Introduction', 'Commission', 'Target Business', etc.

4. Appointment and Scope: Defines the finder's role, services to be provided, and whether the appointment is exclusive or non-exclusive

5. Commission Structure: Details the commission rates, calculation method, and qualifying criteria for commission payment

6. Payment Terms: Specifies payment timing, method, currency, and any conditions precedent to payment

7. Finder's Obligations: Lists the finder's duties, responsibilities, and standard of service

8. Principal's Obligations: Outlines the principal's responsibilities, including information provision and payment obligations

9. Term and Termination: Specifies the duration of the agreement and circumstances for termination

10. Confidentiality: Addresses handling of confidential information and trade secrets

11. Governing Law and Jurisdiction: Specifies Pakistani law as governing law and defines jurisdiction for dispute resolution

12. General Provisions: Contains standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Finder's Fee Commission Agreement?

1. Non-Circumvention: Include when there's risk of the principal bypassing the finder to avoid commission payments

2. Post-Termination Commission: Include when commissions may be payable after agreement termination for previously introduced opportunities

3. Exclusivity Provisions: Include when the finder is granted exclusive rights for specific territories or opportunities

4. Anti-Corruption Compliance: Include for high-value transactions or when dealing with government entities

5. Force Majeure: Include when extended performance periods are contemplated or in volatile markets

6. Tax Provisions: Include detailed tax clauses when cross-border payments are involved or for high-value commissions

7. Dispute Resolution: Include detailed arbitration or mediation procedures for high-value agreements

What schedules should be included in a Finder's Fee Commission Agreement?

1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and calculation examples

2. Target Business Profile: Specific criteria and parameters of businesses or opportunities the finder should target

3. Excluded Opportunities: List of pre-existing contacts or opportunities excluded from commission eligibility

4. Required Information Form: Template for submitting potential opportunity information

5. Compliance Procedures: Detailed procedures for ensuring compliance with relevant laws and regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Pakistan

Publisher

Ƶ

Document Type

Fee Agreement

Cost

Free to use

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