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Simple English definitions for legal terms
finder's-fee contract
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A quick definition of finder's-fee contract:
A finder's-fee contract is an agreement between two parties where one person helps the other find a business opportunity. The finder gets paid a fee for their help. It's like a reward for finding something valuable.
A more thorough explanation:
A finder's-fee contract is an agreement between two parties where one party, known as the finder, helps the other party find a business opportunity. In return, the finder receives a fee or commission for their services.
Example 1: John is a real estate agent who helps his client, Sarah, find a new home. Sarah agrees to pay John a finder's fee of 3% of the total cost of the home for his services.
Example 2: Jane is a recruiter who helps a company find a new employee. The company agrees to pay Jane a finder's fee of $5,000 for her services.
These examples illustrate how a finder's-fee contract works. In both cases, the finder provides a valuable service by helping the other party find what they are looking for. In return, the finder receives a fee or commission for their efforts.