News:

And we're back!

Main Menu

Discretional fees in business arrangements

Started by Martinus, October 12, 2012, 09:22:29 AM

Previous topic - Next topic

Martinus

This is especially addressed to lawyers but also to other people who participate in business negotiations, especially in services - how common is it in your country/culture to make business arrangements where the service recipient agrees to pay a certain fee but also agrees that if he or she is satisfied with the job you performed, he will pay an entirely discretionary bonus?

Just to clarify, this is not a success fee.

I'm asking because we have recently made such an arrangement with a client (i.e. they pay us a base amount of X, if the transaction succeeds they pay us an extra amount of Y, but if they are satisfied with the service, on top of X+Y, they will also pay us extra an amount they consider appropriate) and this is the first time I have encountered this but people who have made such arrangements with clients in the past have often been quite happy with it.

Tamas


The Brain

Women want me. Men want to be with me.