Finder's Fee Agreement Template for Singapore

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Key Requirements PROMPT example:

Finder's Fee Agreement

"I need a Finder's Fee Agreement for my Singapore-based tech company to engage an independent consultant who will help us find potential investors, offering a 2% success fee for introductions that result in investments over SGD 1 million."

Document background
A Finder's Fee Agreement is essential when businesses or individuals wish to formalize arrangements for receiving introductions to potential clients, investors, or business opportunities in exchange for compensation. Under Singapore law, these agreements must carefully navigate various regulatory requirements, particularly when the introductions involve financial services or securities. The agreement typically specifies the scope of the finder's activities, the circumstances under which a fee becomes payable, and the calculation method for such fees. It's crucial that the agreement clearly distinguishes the finder's role from regulated activities requiring licenses and ensures compliance with anti-corruption laws.
Suggested Sections

1. Parties: Identification of the principal and finder with full legal names and addresses

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Key terms used throughout the agreement

4. Scope of Services: Detailed description of finder's duties and responsibilities

5. Fee Structure: Amount, calculation method, and payment terms of finder's fee

6. Term and Termination: Duration of agreement and termination conditions

7. Confidentiality: Protection of confidential information

8. Governing Law: Applicable law and jurisdiction

Optional Sections

1. Non-Compete: Restrictions on finder's activities with competitors - used when protecting business interests from competition

2. Exclusivity: Terms of exclusive rights - used when granting exclusive finding rights

3. Insurance: Insurance requirements - used when specific risks need to be covered

4. Intellectual Property: IP rights and protection - used when IP might be shared or created

Suggested Schedules

1. Fee Schedule: Detailed breakdown of fee calculations and payment terms

2. Territory Schedule: Geographic areas covered by the agreement

3. Target Client Profile: Description of ideal clients or opportunities

4. Reporting Template: Standard format for activity reporting

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

Clauses
Industries

Singapore Contract Act (Cap. 2): Primary legislation governing contract formation, consideration, and enforceability, based on Common Law principles derived from English law

Money-changing and Remittance Businesses Act: Regulates activities involving financial transactions or introductions, may be relevant if finder's services involve such activities

Securities and Futures Act (SFA): Governs activities involving securities, capital markets products, or investment opportunities, including licensing requirements for relevant activities

Financial Advisers Act (FAA): Regulates financial advisory services and includes registration requirements for providers of such services

Employment Act: Important for establishing clear distinction between independent contractor and employee status to avoid creating unintended employer-employee relationships

Personal Data Protection Act 2012 (PDPA): Governs the handling of personal data, including consent requirements and data protection obligations during the introduction process

Prevention of Corruption Act: Ensures fee arrangements don't constitute illegal kickbacks or corrupt practices

Goods and Services Tax Act: Covers GST implications on finder's fees and related registration requirements

Income Tax Act: Addresses tax treatment of finder's fees and withholding tax obligations

Consumer Protection (Fair Trading) Act: Relevant if the arrangement involves consumer transactions, protecting consumer rights and interests

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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