Document background
The Success Fee Agreement is a crucial document for business arrangements where payment is tied to specific outcomes or performance metrics. This agreement type is commonly used in Canadian business contexts where traditional fixed-fee or time-based billing may not align with the parties' interests. It's particularly valuable in scenarios such as business sales, consulting projects, fundraising efforts, or major transaction completions. The document typically includes detailed success criteria, measurement methodologies, payment triggers, and dispute resolution mechanisms. Governed by Canadian contract law and relevant provincial regulations, this agreement ensures both parties have clear expectations regarding performance requirements and compensation structures. The Success Fee Agreement helps align interests between service providers and clients while providing legal protection and clarity for all parties involved.
