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Legal Finder Agreement

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LEGAL FINDER AGREEMENT

This Legal Finder Agreement ("Agreement") is entered into as of Effective Date: by and between Finder Name: with principal address: and Client Name: with principal address: . Each of Finder and Client may be referred to herein as a "Party" and collectively as the "Parties."

RECITALS

WHEREAS, Finder maintains business relationships and market knowledge that enable Finder to identify potential clients, matters, or opportunities requiring legal services (each, a "Prospective Engagement"); and

WHEREAS, Client desires to engage Finder to identify and introduce Prospective Engagements to Client under the terms and conditions set forth in this Agreement; and

WHEREAS, Finder desires to render such introduction services on the terms set forth herein and shall not provide legal advice, representation, or perform legal services as part of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS

1.1 "Introduced Party" means any person or entity (including any affiliate) that Finder introduces in writing, by electronic communication, or in person to Client during the Term and that subsequently engages Client to provide legal services or retains Client in a matter arising from such introduction.

1.2 "Finder Fee" means the compensation payable by Client to Finder for a successful introduction as set forth in Section 4.

2. APPOINTMENT AND SCOPE

2.1 Appointment. Client hereby engages Finder on a non-legal, non-exclusive basis to identify and introduce potential clients, matters, or opportunities for which Client may provide legal services, unless the Parties expressly elect an exclusive engagement by checking the box below.

Exclusive engagement (check to make Finder the exclusive source of introductions for the Term)

2.2 Limitation. Finder shall not provide legal advice, accept retainers, represent any Introduced Party in legal matters on behalf of Client, or otherwise act as an attorney for any party. Finder's role is limited to making introductions and providing non-legal business development assistance.

3. FINDER DUTIES

3.1 Performance. Finder shall use commercially reasonable efforts to identify prospective clients and to present accurate, good faith information about prospective matters. Finder shall document each introduction in writing to Client within a commercially reasonable time following the introduction.

3.2 Conflicts. Finder shall disclose to Client any actual material conflict of interest of which Finder is aware prior to making an introduction. Finder shall not knowingly introduce any person or entity that Finder knows is disqualified from retaining Client.

4. FEES AND PAYMENT

4.1 Fee Structure. Client shall pay Finder a Finder Fee equal to % of the Net Legal Fees actually received by Client from an Introduced Party in respect of the same matter within the Fee Term. "Net Legal Fees" means gross legal fees earned by Client from the Introduced Party less only documented refunds and credits actually paid to the Introduced Party.

4.2 Fee Term and Cap. Finder shall be entitled to Finder Fee for engagements that originate from introductions made during the Term for a period of months following the date of introduction, subject to a maximum aggregate Finder Fee cap of $ per Introduced Party unless otherwise agreed in writing.

4.3 Payment Terms. Client will invoice Finder Fee payments to Finder within days after receipt of payment from the Introduced Party. All payments shall be made in United States dollars and are due within thirty (30) days of Client's invoice unless otherwise stated. Late payments accrue interest at the lesser of 1.5% per month or the maximum permitted by law.

4.4 Documentation. Client shall provide Finder, upon request, reasonable documentation demonstrating Net Legal Fees received from an Introduced Party for which Finder claims a Finder Fee, subject to confidentiality protections described in Section 6.

5. TERM AND TERMINATION

5.1 Term. This Agreement shall commence on the Effective Date and continue for an initial term of months, and shall automatically renew for successive one-year periods unless either Party provides written notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

5.2 Termination for Cause. Either Party may terminate this Agreement for material breach by the other Party if the breach is not cured within thirty (30) days after written notice specifying the breach. Termination shall not relieve Client of obligations to pay earned Finder Fees for introductions made prior to termination in accordance with the terms hereof.

6. CONFIDENTIALITY

6.1 Confidential Information. Each Party agrees to keep confidential all non-public, proprietary, and commercially sensitive information disclosed by the other Party in connection with an introduction, except information that: (a) is or becomes publicly available through no breach of this Agreement; (b) is independently developed by the receiving Party without use of the disclosing Party's confidential information; or (c) is required to be disclosed by law or by a court or regulatory authority.

6.2 Use Restriction. Finder shall not use confidential information of Client to solicit Client's clients other than as contemplated by this Agreement. Client shall not disclose to Finder privileged or sensitive client materials that could impair Client's attorney-client relationship with any person or entity.

7. REPRESENTATIONS, WARRANTIES, AND COVENANTS

7.1 Mutual Representations. Each Party represents and warrants that it has full power and authority to enter into this Agreement, that the person signing below on its behalf is duly authorized, and that this Agreement constitutes a valid, binding obligation enforceable in accordance with its terms.

7.2 Finder Representations. Finder represents that it will deal with Introduced Parties in good faith and that any information provided to Client about an Introduced Party will be true and accurate to the best of Finder's knowledge as of the date provided.

8. INDEMNIFICATION

8.1 Indemnification by Finder. Finder shall indemnify, defend and hold harmless Client and its officers, directors, employees, and agents from and against any third-party claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of Finder's breach of this Agreement, willful misconduct, or negligent acts in connection with the performance of Finder's duties hereunder.

8.2 Indemnification by Client. Client shall indemnify, defend and hold harmless Finder from and against any third-party claims arising out of Client's provision of legal services to an Introduced Party, including malpractice or other professional liability claims, except to the extent such claims result from Finder's breach, willful misconduct, or gross negligence.

9. LIMITATION OF LIABILITY

EXCEPT FOR EACH PARTY'S INDEMNIFICATION OBLIGATIONS OR FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE AGGREGATE LIABILITY OF EITHER PARTY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE TO FINDER UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

10. ASSIGNMENT

Neither Party may assign its rights or delegate its obligations under this Agreement without the prior written consent of the other Party, except that Client may assign this Agreement without Finder's consent to an acquirer of all or substantially all of Client's business or assets to which this Agreement relates, provided that such assignee assumes Client's obligations hereunder in writing.

11. NOTICES

All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and addressed to the Parties at their respective notice addresses set forth below (or to such other address that a Party may designate by notice to the other Party in accordance with this Section).

12. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law rules. The Parties consent to the exclusive jurisdiction and venue of the state and federal courts located in that State for resolution of any disputes arising under or related to this Agreement.

13. ENTIRE AGREEMENT; SEVERABILITY

13.1 Entire Agreement. This Agreement, including all schedules and written attachments hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, communications, and understandings, whether written or oral.

13.2 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect, such provision shall be severed and the remainder of this Agreement shall remain in full force and effect to the maximum extent permitted by law.

14. AMENDMENTS; WAIVER; COUNTERPARTS

14.1 Amendments. No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties.

14.2 Waiver. No failure or delay by either Party in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof.

14.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures exchanged by facsimile or electronic image shall be binding.

15. ADDITIONAL PROVISIONS

SIGNATURES

Finder Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

Enter text✕

What the Legal Finder Agreement Does

A Legal Finder Agreement is a contract that documents the relationship between a party who introduces or identifies potential clients, leads, or opportunities (the finder) and the party that receives those introductions (the recipient). It defines the finder’s scope of activity, compensation structure, timing for payments, and any limitations on authority. The agreement allocates responsibilities for verification, confidentiality, and compliance, and it typically addresses whether introductions lead to a sale, engagement, or a formal contractual relationship between the recipient and the introduced party.

Why a Written Finder Agreement Matters

A written Legal Finder Agreement clarifies compensation triggers, reduces disputes over entitlement, and documents consent to the relationship. Use a formal agreement to preserve evidence of intent and attribution, which supports electronic signature validity under the ESIGN Act (15 U.S.C. ch. 96) and UETA (1999) where adopted.

Why a Written Finder Agreement Matters

Who Commonly Relies on a Finder Agreement

Use a written agreement when introductions could reasonably lead to revenue, equity, or other material benefits to document entitlement and reduce later disputes.

  • Independent brokers and corporate business development professionals who receive referral fees.
  • Startups and investor relations teams that compensate introducers for connecting capital or strategic partners.
  • Law firms and consultants who retain third-party lead generators or matchmakers.

Core Elements to Include in a Professional Agreement

A complete Legal Finder Agreement defines the parties, the scope of permitted introductions, compensation formulas, payment timing, term and termination, confidentiality obligations, and dispute resolution. Including clear definitions and examples of qualifying introductions reduces ambiguity and supports enforceability.

Parties

Full legal names and entity types for the finder and recipient, including registration details and a primary contact.

Scope

Precise description of eligible introductions, excluded targets, and whether introductions require a written acceptance by the recipient.

Compensation

Formula for fees or percentages, triggering events, payment schedule, and treatment of taxes and expenses.

Term & Termination

Effective date, duration, renewal terms, and post-termination referral protection (survival period) if applicable.

Confidentiality

Non-disclosure obligations, permitted disclosures, and duration tied to business sensitivity and trade-secret law.

Dispute Resolution

Governing law, venue, arbitration or court options, and attorneys’ fee allocation.

Step-by-Step: Completing the Legal Finder Agreement

Follow a structured sequence to ensure the agreement is complete, consistent, and enforceable. Review each field for accuracy and obtain required signatures in the correct order.

  • 01
    Drafting: Identify parties, define scope, and set compensation triggers with examples.
  • 02
    Internal Review: Have legal or finance review payment mechanics and tax consequences.
  • 03
    Signatures: Collect signatures from authorized signatories and include dates.
  • 04
    Recordkeeping: Store executed copies, evidence of delivery, and any supporting invoices or closing documents.

Configuring an Online Completion Workflow

Set a clear digital workflow so the right parties review and sign in sequence. Use field validation and required fields to reduce errors.

Field Configuration
Order of Signers Define signer sequence to ensure authorization comes from the correct party.
Required Fields Mark names, effective date, and compensation fields as required to prevent incomplete submissions.
Authentication Choose email verification, SMS code, or stronger authentication for sensitive agreements.
Audit Trail Enable timestamping and IP capture for each signing event to support attribution.

Where to Send, File, or Deliver the Agreement

Route the executed agreement to relevant internal teams and external parties. Establish a single authoritative repository and distribute certified copies.

  • Recipient Legal Team: Primary executed copy for contract administration and interpretation.
  • Finance / Accounts Payable: Copy for triggering payment and maintaining audit support.
  • Finder Record: Provide finder with a signed copy and confirmation of payment triggers.
  • Secure Archive: Store final PDF with audit trail in a document management system for retention compliance.

Digital Signing and Distribution Considerations

Choose an eSignature platform that supports required authentication, audit trails, and secure storage for the agreement.

  • Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace are common targets for automated routing.
  • File Formats: PDF and DOCX are standard; ensure the platform preserves audit metadata and produces a tamper-evident PDF.
  • Authentication: Email verification, SMS codes, or KBA can be used depending on risk and regulatory needs.

Key Timing Items and Typical Processing Expectations

Track dates that affect entitlement and payment: effective date, qualification period, payment trigger, and survival period after termination.

Effective Date:

Enter as MM/DD/YYYY; obligations and timing begin on this date.

Qualification Period:

Define how long an introduction remains eligible for payment (e.g., 6–24 months).

Payment Window:

Specify days after trigger for payment (net 30, net 45, etc.).

Survival Period:

State how long referrals after termination remain payable (commonly 6–24 months).

Record Retention:

Preserve executed agreements and supporting docs per retention policy.

Penalties and Risks from Incorrect or Missing Terms

Unclear Payment Triggers: Leads to disputes and delayed payments; courts may deny recovery without clear triggering events.
Improper Licensing: Compensation in regulated industries (real estate, securities) can violate licensing rules and attract fines.
Tax Reporting Errors: Misreporting referral fees may trigger IRC §6721 penalties for information returns.
Data Privacy Breach: Failure to protect personal data can violate HIPAA or state privacy laws, exposing the parties to penalties.
Statute of Frauds: Oral agreements exceeding jurisdictional thresholds may be unenforceable; confirm writing requirements.
Attribution Gaps: Lack of evidence showing intent and attribution can weaken enforceability under ESIGN/UETA.

Common Drafting Errors to Avoid

  • Vague compensation formulas that omit percentages, caps, or calculation timing.
  • Failing to define what counts as a qualifying introduction or a disqualifying existing lead.
  • Not specifying the governing law or dispute resolution process clearly.
  • Omitting recordkeeping requirements or supporting documentation needed to claim a fee.

Illustrative Use Cases

Two brief examples show typical situations where a finder agreement prevents dispute and clarifies compensation.

Startup Fundraise

A founder engages a connector to introduce potential investors.

  • Fee is 3% of capital raised when funds are wired.
  • The agreement required investor qualification criteria and produced a clear payment trigger, avoiding later disagreement about which leads qualified.

Commercial Lease

A property owner pays a local broker for tenant introductions.

  • Fee due on lease execution and first month payment.
  • The contract defined tenant credit thresholds and survival period so the broker received payment only for qualified, executed leases.

Who Can Sign and Bind the Parties

Authorized Officer

An officer or manager with authority to enter contracts on behalf of an entity must sign. Confirm authority via corporate resolution or certificate of incumbency when appropriate to avoid disputes about binding authority.

Individual Finder

If the finder operates as an individual, the individual signs and provides a taxpayer identification number for reporting. For finders acting through an entity, the entity signs and the executing officer confirms authority.

Representative eSignature Vendor Comparison for Finder Agreements

Document signing platforms vary on price, bulk send, and compliance. signNow is listed first to show comparative attributes relevant to contracting workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor — verify Varies by vendor — verify Varies by vendor — verify Varies by vendor — verify
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions and Troubleshooting

Answers to common questions about enforceability, eSigning, and typical execution issues with finder agreements.


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