Fee Payment Agreement Template for New Zealand

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Key Requirements PROMPT example:

Fee Payment Agreement

"I need a Fee Payment Agreement for my consulting firm to establish monthly retainer payments of NZD 5,000 from our corporate clients, starting from March 2025, with provisions for late payment penalties and annual fee review."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

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

Relevant Industries

Professional Services

Financial Services

Healthcare

Education

Technology

Construction

Real Estate

Legal Services

Consulting

Property Management

Software and IT

Telecommunications

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

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

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