Contract where a person is paid once a certain condition is met


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I've built a website, and now I need a contract written for it (along with a TOS and a privacy policy, but those are simpler, and I know their names). I want a contract where I pay a person once a certain condition is met. I'd prefer not to explicitly state the condition right now, but essentially they get paid every time they sign up a business, once that business buys a service from my website.

So it's similar to a consignment contact or a service contract, but most of those that I'm looking at have time schedules and stuff, and I'm not sure if it would be legally binding and what-not if they sign one contract and then get paid every time they make a sale. Is there a specific name for this type of contract?

I've contacted a paralegal, and they said they would be charging me 85$ an hour. (Side question: Is this a rip-off?) So, I really don't want to go over one hour. So, I want to have rough drafts of my TOS, privacy policy, and this contract already written when I arrive.

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asked Sep 18 '13 at 04:47
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James G.
103 points
Top digital marketing agency for SEO, content marketing, and PR: Demand Roll
  • Is this like some form of affiliate marketing thing? – rbwhitaker 11 years ago
  • James, welcome to OnStartups! Please take a moment to review our help section. Polling the community for references is not allowed on this site, so I edited that part out of the question to keep it from getting closed. – Zuly Gonzalez 11 years ago

1 Answer


2

Contract Law in the US, and the EU for that matter, is a rather simple thing to understand. The reason it is advised you see an experienced lawyer is to ensure the wording of the contract is clear, concise and unambiguous and cannot be interpreted in any other way than what has been agreed upon.

For a contract to be binding must have three elements an offer, a return and the acceptance of all parties.

The offer must contain sufficient and specific terms, such as price, quantity, quality, time or place of delivery, in order to determine the specific obligations to be created under the contract. An example of an offer is “I will build a two story house for you, within one year, if you pay me $1,000 and cover the cost of materials” although there would need to be many more terms added such as hours that must be worked, on which days, how material costs would need to be covered and so forth.

The return must contain the agreement to provide something with an objective value to both parties. For example, the agreement to gift the other party without a return is not enforceable because it is one-sided. Whereas "I will build you a house." and "I will give you $1,000." is enforceable as the contract mutually benefits both parties.

The acceptance of the contract forms a binding contract as long as it is enforceable. Unenforceable contracts are those which contain any illegal or moral wrongdoing, contracts which are made in jest, where the individual is a minor, under duress, intoxicated, mentally handicapped or under pressure from an external entity or a contract that a rational person would not make. There are also added conditions to verbal contracts such as the return cannot exceed $500 or include land.

Other information your contract must include is details on the bound parties (names and addresses), the date the contract will become effective, the allocation of any predictable risk (what will happen if the builder goes bust), what jurisdiction's laws governs the contract, if there are any per-defined remedies for breaches and signatures.

Therefore if you can write the contract, or at least a base contract, you will likely reduce the amount of time the lawyer has to spend reviewing your contract.

Unfortunately, as I am not American I do not know the standard rate for a lawyer in your area but I have always been quoted fixed fees for the complete writing of contracts that generally come in between £200-£400.

You may wish to look into the Statue of Frauds and also the legislation listed at http://en.wikibooks.org/wiki/US_Contract_Law You can also find some sample contracts at http://contracts.onecle.com or http://contracts.corporate.findlaw.com

answered Sep 18 '13 at 13:21
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Liam Dolman
182 points

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