Introduction Fee Agreement Template for New Zealand

An Introduction Fee Agreement is a legally binding contract that governs the payment of fees when one party introduces another party to a business opportunity, potential client, or investment prospect. Under New Zealand law, this document establishes clear terms for what constitutes a qualifying introduction and ensures both parties understand their obligations and entitlements regarding compensation.

When do you need this document?

You need an Introduction Fee Agreement when facilitating business connections that may result in financial transactions or ongoing relationships. This includes scenarios where business brokers introduce buyers to sellers, financial advisors refer clients to investment opportunities, or consultants connect businesses with potential partners. The agreement is particularly crucial in mergers and acquisitions, where introduction fees can be substantial. It's also essential for recruitment agencies placing candidates, professional services firms referring clients, and any situation where your introductions create value for which you expect compensation.

Key legal considerations

The agreement must clearly define what constitutes a qualifying introduction to avoid disputes over fee entitlement. Fee calculation methods should be specific, whether based on transaction values, fixed amounts, or performance milestones. Payment terms must specify when fees become due and the timeframe for payment. Exclusivity clauses determine whether the introducer has sole rights to earn fees for particular introductions. The agreement should include provisions for situations where multiple parties claim introduction rights. Confidentiality clauses protect sensitive information shared during the introduction process. Additionally, the contract must address what happens if introduced parties circumvent the introducer to avoid paying fees, including appropriate clawback provisions and non-circumvention clauses.

Legal requirements in New Zealand

Under the Contract and Commercial Law Act 2017, your Introduction Fee Agreement must meet standard contract formation requirements including clear offer and acceptance, adequate consideration, and intention to create legal relations. The Fair Trading Act 1986 prohibits misleading or deceptive conduct, requiring you to accurately represent the scope and nature of your introduction services. If providing services to consumers rather than businesses, the Consumer Guarantees Act 1993 may apply, ensuring your services meet reasonable quality standards. For introductions involving financial services, you may need to comply with Financial Markets Conduct Act 2013 requirements. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 may apply if your introductions involve financial transactions requiring customer due diligence. Ensure your agreement includes dispute resolution mechanisms, as New Zealand courts favour alternative dispute resolution methods. The contract should specify New Zealand law as the governing law and identify appropriate jurisdiction for any legal proceedings.