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Finders Fee Contract

Finders Fee Contract Template for Indonesia

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Key Requirements PROMPT example:

Finders Fee Contract

"I need a Finder's Fee Contract for my Indonesian real estate company to engage international property scouts who will identify luxury villa investment opportunities in Bali, with payment structures in both USD and IDR, to be effective from March 2025."

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Document background
The Finder's Fee Contract serves as a crucial legal instrument in Indonesian business transactions where companies seek to expand their network and opportunities through third-party intermediaries. This document is essential when businesses want to formalize arrangements with individuals or entities who can facilitate valuable introductions or business opportunities. The contract specifically addresses the Indonesian legal framework, including compliance with Law No. 7 of 2014 on Trade and relevant tax regulations. It clearly defines the scope of the finder's activities, payment triggers, and compensation structure while incorporating necessary safeguards against potential disputes and ensuring compliance with anti-corruption laws. The agreement is particularly relevant in contexts where businesses seek to expand their operations, enter new markets, or identify potential partners or clients in Indonesia.
Suggested Sections

1. Parties: Identification of the Principal and the Finder, including full legal names, addresses, and company registration details

2. Background: Context of the agreement, including the Principal's business and the purpose of engaging the Finder

3. Definitions: Key terms used in the agreement, including 'Successful Introduction', 'Target Business', 'Finder's Fee', etc.

4. Scope of Services: Detailed description of the finder's duties, responsibilities, and authorized activities

5. Fee Structure: Clear outline of the finder's fee calculation method, payment triggers, and payment terms

6. Payment Terms: Timing of payments, payment method, currency, and any conditions precedent to payment

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity and authority

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

10. Compliance with Laws: Commitment to comply with Indonesian laws, including anti-bribery and corruption laws

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction for disputes

Optional Sections

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

2. International Payments: Include when payments will be made across borders, addressing currency and transfer requirements

3. Non-Circumvention: Added when there's risk of the Principal bypassing the Finder

4. Force Majeure: Include for longer-term arrangements to address unforeseen circumstances

5. Dispute Resolution: Detailed dispute resolution procedures, particularly for high-value agreements

6. Insurance: Include when the Finder is required to maintain specific insurance coverage

7. Non-Compete: Used when the Finder should be restricted from working with competitors

Suggested Schedules

1. Schedule A - Fee Calculation: Detailed breakdown of fee calculations, including examples and scenarios

2. Schedule B - Target Business Profile: Specific criteria and parameters of businesses or opportunities being sought

3. Schedule C - Excluded Opportunities: List of pre-existing contacts or opportunities excluded from the agreement

4. Schedule D - Required Information: Template or checklist of information the Finder must provide for each introduction

5. Appendix 1 - Reporting Template: Standard format for regular reports or introduction documentation

6. Appendix 2 - Compliance Procedures: Detailed procedures for ensuring compliance with Indonesian regulations

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Financial Services

Real Estate

Manufacturing

Technology

Mining

Agriculture

Professional Services

Import/Export

Retail

Construction

Energy

Telecommunications

Relevant Teams

Legal

Business Development

Finance

Procurement

Commercial

Compliance

Corporate Development

Strategic Planning

Operations

Risk Management

Relevant Roles

Business Development Manager

Chief Executive Officer

Legal Counsel

Commercial Director

Finance Director

Procurement Manager

Business Consultant

Corporate Development Officer

Mergers & Acquisitions Manager

Strategic Partnerships Manager

Investment Director

Contract Administrator

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): The fundamental law governing contracts in Indonesia, including formation, validity, and enforcement of contractual agreements
Law No. 7 of 2014 on Trade: Regulates trading activities and intermediary services in Indonesia, including provisions relevant to finder's fee arrangements
Government Regulation No. 23 of 2018: Governs taxation on income from business activities, including finder's fees, with specific tax rates for different income levels
Law No. 13 of 2003 on Labor: Contains provisions that may apply if the finder's relationship could be interpreted as an employment relationship
Law No. 11 of 2020 (Omnibus Law): Recent comprehensive law affecting business practices and employment relationships in Indonesia
Law No. 31 of 1999 on Corruption Eradication: Anti-corruption law ensuring finder's fee arrangements are legitimate and not disguised bribes
Minister of Trade Regulation No. 51/M-DAG/PER/7/2020: Specific regulations on business licensing and requirements for intermediary services
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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