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Simple Finders Fee Agreement Template for South Africa

A Simple Finder's Fee Agreement governed by South African law that establishes the terms and conditions under which a finder will be compensated for successfully introducing business opportunities, clients, or partners to the principal. The agreement complies with South African commercial law, including the Financial Advisory and Intermediary Services Act where applicable, and sets out clear payment terms, scope of services, and the criteria for what constitutes a successful introduction. It includes necessary provisions for confidentiality and regulatory compliance while maintaining a straightforward and practical approach suitable for standard business transactions.

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What is a Simple Finders Fee Agreement?

The Simple Finder's Fee Agreement is a fundamental commercial document used in South African business contexts where one party (the finder) agrees to introduce potential business opportunities, clients, or partners to another party (the principal) in exchange for a fee. This document is particularly relevant in today's interconnected business environment where networking and business introductions play a crucial role in growth and development. The agreement typically specifies the scope of the finder's services, defines what constitutes a successful introduction, outlines the fee structure and payment terms, and includes necessary provisions to ensure compliance with South African legislation, including the Financial Advisory and Intermediary Services Act where applicable. It's designed to protect both parties' interests while maintaining clarity and simplicity in the business relationship.

What sections should be included in a Simple Finders Fee Agreement?

1. Parties: Identifies the principal and the finder, including their full legal names, registration numbers (if applicable), and physical addresses

2. Background: Brief context of the agreement, explaining the principal's need for the finder's services

3. Definitions: Defines key terms used in the agreement, including 'Successful Introduction', 'Target Business', and 'Finder's Fee'

4. Scope of Services: Details the specific services the finder will provide and any limitations on their authority

5. Finder's Fee and Payment Terms: Specifies the fee structure, calculation method, and payment terms including timing of payments

6. Term and Termination: Defines the duration of the agreement and circumstances under which it can be terminated

7. Representations and Warranties: Basic warranties from both parties, including finder's compliance with applicable laws

8. Confidentiality: Obligations regarding confidential information shared during the engagement

9. General Terms: Standard contractual provisions including notices, entire agreement, and governing law

What sections are optional to include in a Simple Finders Fee Agreement?

1. Exclusivity: Used when the finder is granted exclusive rights for specific targets or territories

2. Regulatory Compliance: Required when the services might fall under FAIS Act or other regulatory frameworks

3. Non-Circumvention: Added when there's risk of the principal bypassing the finder

4. Intellectual Property: Included when proprietary information or methods are involved in the finder's services

5. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard court jurisdiction

6. Force Majeure: Added when specific provision for unforeseen circumstances is desired

What schedules should be included in a Simple Finders Fee Agreement?

1. Schedule A - Fee Calculation: Detailed breakdown of fee calculation methods and examples

2. Schedule B - Target Business Profile: Specific criteria or list of target businesses/industries

3. Schedule C - Excluded Targets: List of businesses or individuals excluded from the scope of the agreement

Authors

Alex Denne

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

Jurisdiction

South Africa

Document Type

Referral Agreement

Sector

Sales

Cost

Free to use

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