When working in the industry of finding and bringing together buyers and sellers, it is common practice to have a finder`s fee agreement in place. A finder’s fee agreement is a legally binding contract that outlines the terms and conditions under which a finder or intermediary will be paid a commission for successfully locating a buyer or seller for a particular service or product.

A sample finder`s fee agreement should include the following key elements:

1. Parties involved: The agreement should clearly identify the parties involved in the transaction, including the name and contact information of the finder, the buyer, and the seller.

2. Payment terms: The finder`s fee agreement should specify the amount of the commission payable to the finder and the conditions under which the payment will be made. The percentage of the commission, which is usually between five to ten percent, should be clearly stated in the agreement, along with information on how the fee will be paid.

3. Non-disclosure agreement: A non-disclosure agreement may be included to prevent the finder from disclosing any confidential information they learned during the course of the transaction.

4. Representation and warranties: Both the buyer and seller should make representations and warranties regarding the accuracy of the information they provide to the finder, including details about the product or service, financial statements, customer lists, and any other relevant information.

5. Termination: The agreement should include provisions for the termination of the agreement by either party, with or without cause, as well as the consequences of such termination.

6. Governing law: The agreement should specify the governing law that will be used to interpret the contract and resolve any disputes that may arise.

In conclusion, having a finder`s fee agreement in place is essential for any intermediary or finder working in the industry of bringing together buyers and sellers. A well-written agreement provides protection to all parties involved and ensures a fair commission for the finder`s services. By including key elements outlined in a sample finder`s fee agreement, the process of finding a buyer or seller becomes more organized and clearly stated.