Legal Definitions - finder's-fee contract

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.