Finder's Fee Agreement Template for India

A Finder's Fee Agreement creates a legal arrangement where someone gets paid for connecting parties to valuable business opportunities. Think of it as a formal "thank you" payment for introducing potential buyers, investors, or business partners who end up completing a successful deal.

Under Indian contract law, these agreements spell out exactly who pays what commission and when, helping prevent future disputes. Common in real estate, merger deals, and investment circles, they typically include payment terms, confidentiality rules, and conditions that must be met before the finder gets paid. Making sure everything's in writing protects both sides and follows Indian regulations on business referral payments.

Use a Finder's Fee Agreement when someone helps connect you with valuable business opportunities that lead to successful deals. This could be someone introducing you to potential investors for your startup, helping you find the perfect commercial property, or connecting you with merger partners who end up closing the transaction.

The agreement becomes essential before any introductions happen, especially in India's dynamic business environment where informal arrangements can lead to payment disputes. It's particularly important in regulated sectors like real estate and financial services, where documenting referral relationships helps maintain compliance and prevents misunderstandings about commission structures or payment timing.

• Finders Fee Contract: Basic agreement focused on one-time business introductions, with straightforward commission structures and payment terms
• Introductory Fee Agreement: More comprehensive version covering multiple potential introductions, often used in professional services and consulting
• Introduction Fee Agreement: Specialized format for real estate and investment deals, featuring detailed success criteria and staged payment structures aligned with Indian property laws

• Business Owners: Entrepreneurs and companies who agree to pay fees for successful introductions to investors, partners, or customers
• Professional Intermediaries: Business consultants, brokers, and advisors who connect parties and earn commissions for successful deals
• Real Estate Agents: Property specialists who facilitate deals between buyers and sellers, ensuring clear documentation of their finder's fees
• Investment Bankers: Financial professionals who connect companies with potential investors or merger partners
• Legal Advisors: Lawyers who draft and review these agreements to ensure compliance with Indian contract law and industry regulations

• Party Details: Gather complete contact information and business registration details for both the finder and the company paying the fee
• Scope Definition: Clearly outline what constitutes a successful introduction and which types of deals qualify for payment
• Fee Structure: Decide on fixed amounts or percentage-based fees, including any staged payments or success criteria
• Payment Terms: Specify payment timelines, methods, and conditions that trigger fee obligations
• Compliance Check: Review Indian regulations on referral fees in your industry, especially for real estate or financial services
• Documentation: Use our platform to generate a legally-sound agreement that includes all required elements and follows Indian contract law

• Party Identification: Full legal names, addresses, and business registration details of the finder and the company
• Services Description: Detailed scope of introduction services and target opportunities
• Success Criteria: Clear definition of what constitutes a successful introduction warranting payment
• Fee Structure: Precise payment terms, amounts or percentages, and payment triggers
• Confidentiality: Terms protecting sensitive business information shared during introductions
• Term and Termination: Agreement duration and conditions for ending the relationship
• Governing Law: Explicit statement that Indian law governs the agreement
• Dispute Resolution: Mechanism for resolving disagreements under Indian jurisdiction

Let's compare a Finder's Fee Agreement with a Agency Agreement, as these documents often cause confusion in Indian business contexts. While both involve intermediary relationships, they serve distinct purposes and carry different legal obligations.

• Scope of Authority: Finder's Fee Agreements only cover introductions and referrals, while Agency Agreements grant broader powers to negotiate and act on behalf of the principal
• Duration of Relationship: Finders typically engage in one-off transactions with limited involvement after introduction, whereas agents maintain ongoing relationships with continuous responsibilities
• Legal Liability: Finders bear minimal liability beyond making honest introductions, but agents have fiduciary duties and can legally bind their principals
• Payment Structure: Finder's fees are usually success-based one-time payments, while agency relationships often involve regular commissions or retainer fees
• Regulatory Oversight: Agency relationships face stricter regulatory requirements under Indian law, particularly in sectors like insurance and real estate