Fees clause: Copy, customize, and use instantly
Introduction
A fees clause specifies how costs related to the agreement, such as administrative fees, third-party expenses, or operational costs, will be allocated between the parties. It ensures clarity on financial obligations and prevents disputes over unexpected expenses. This clause is particularly important in agreements where significant fees are likely to arise, such as service contracts or partnerships.
Below are fees clause templates tailored for different scenarios. Copy the one you need, customise it, and add it to your contract.
Mutual fees clause
This clause ensures that both parties share costs equally.
Each party agrees to bear an equal share of all fees and costs arising under this agreement, including but not limited to administrative fees, third-party charges, and regulatory expenses, unless otherwise agreed in writing.
Fees paid by one party clause
This clause specifies that one party covers all costs.
[Party A] will be solely responsible for all fees, costs, and expenses incurred under this agreement, including but not limited to administrative fees, licensing fees, and third-party charges.
Pass-through fees clause
This clause allows one party to pass fees onto the other party.
All fees and costs incurred by [Party A] in connection with this agreement, including third-party expenses and administrative charges, will be reimbursed by [Party B] within [insert time period] upon receipt of a detailed invoice.
Proportional fees clause
This clause allocates fees based on usage or contribution.
Fees and costs arising under this agreement will be allocated proportionally between the parties based on their respective usage or contribution, as determined by the terms outlined in [insert section].
Pre-paid fees clause
This clause requires one party to pay fees in advance.
[Party B] will prepay all fees due under this agreement to [Party A] by [insert date]. Any unused portion of the prepaid fees will be refunded within [insert time period] upon termination of this agreement.
Fees with interest clause
This clause imposes interest on unpaid fees.
Any fees not paid within [insert time period] will accrue interest at a rate of [insert percentage]% per month until fully paid, without prejudice to any other rights under this agreement.
Capped fees clause
This clause limits the total amount of fees that can be charged.
Total fees and expenses incurred under this agreement will not exceed [insert dollar amount], regardless of the nature or scope of the activities performed.
Regulatory fees clause
This clause assigns responsibility for compliance-related costs.
[Party A] will bear all regulatory and licensing fees required to fulfill its obligations under this agreement. [Party B] will not be liable for any additional costs related to regulatory compliance.
Contingent fees clause
This clause ties fee payments to specific conditions.
Fees and expenses under this agreement will only become payable upon the occurrence of [specific event, e.g., project completion, regulatory approval]. If the event does not occur, no fees will be due.
Escalating fees clause
This clause increases fees based on the duration of the agreement.
Fees payable under this agreement will increase by [insert percentage]% for every [insert time period], beginning [insert date], to account for inflation or other operational cost adjustments.
Fees adjustment clause
This clause allows for renegotiation of fees under specific circumstances.
Either party may request an adjustment to the fees outlined in this agreement if [specific condition, e.g., market rates, operational costs] significantly change. Such adjustments will require written agreement by both parties.
Fees exclusion clause
This clause excludes certain fees from responsibility.
Neither party will be responsible for [specific fees, e.g., taxes, penalties, or legal expenses] incurred in connection with this agreement, unless otherwise specified.
Third-party fees clause
This clause assigns responsibility for fees charged by external providers.
All fees charged by third-party vendors, service providers, or contractors engaged under this agreement will be paid by [Party A], unless explicitly agreed otherwise in writing.
Indemnification for fees clause
This clause indemnifies one party for costs related to the agreement.
[Party A] agrees to indemnify [Party B] against all fees, costs, and expenses arising from [specific activity or provision] under this agreement, including but not limited to administrative charges and third-party costs.
Fees waiver clause
This clause waives specific fees under certain conditions.
[Party B] agrees to waive [specific fees, e.g., late fees, administrative fees] if [specific condition, e.g., payment is made within 10 days of due date].
Shared fees by milestone clause
This clause splits fees based on project milestones.
Fees under this agreement will be allocated as follows: [insert percentage or dollar amount] payable upon completion of [specific milestone], with subsequent payments tied to additional milestones as outlined in [insert section].
Fees invoicing clause
This clause specifies how fees will be invoiced and paid.
Fees incurred under this agreement will be invoiced by [Party A] on a monthly basis, with payment due within [insert time period] of the invoice date. The invoice must itemize all fees and include supporting documentation for any reimbursable expenses.
Deferred fees clause
This clause allows for the postponement of fees under certain conditions.
All fees due under this agreement may be deferred for a period of [insert time period] upon mutual agreement of the parties or in the event of [specific condition, e.g., unforeseen delays]. Deferred fees will not accrue interest unless otherwise agreed.
Fees as a percentage clause
This clause ties fees to a percentage of revenue or profit.
Fees payable under this agreement will equal [insert percentage]% of [revenue, profit, or other metric] generated from [specific activity or outcome]. Payment will be made within [insert time period] following the calculation period.
Advance on fees clause
This clause establishes an advance payment mechanism for fees.
[Party B] will pay an advance of [insert dollar amount] to [Party A] against future fees under this agreement. The advance will be reconciled against actual fees on a quarterly basis, with any shortfall or overpayment adjusted accordingly.
Incentive-based fees clause
This clause offers performance-based fee adjustments.
Fees under this agreement will include a performance incentive of [insert dollar amount or percentage], payable upon [specific outcome, e.g., achieving targets, delivering ahead of schedule].
Fees cost-sharing clause
This clause outlines a shared responsibility for specific fees.
[Party A] and [Party B] agree to share [specific fees, e.g., marketing expenses, regulatory filings] equally or as follows: [insert percentage split]. Each party will pay its share directly to the service provider or as invoiced by the other party.
Fee forgiveness clause
This clause allows for waiving certain fees under specific circumstances.
[Party A] agrees to forgive all fees due under this agreement if [specific event, e.g., termination before services rendered, failure to meet deliverables] occurs. This forgiveness does not affect other payment obligations under the agreement.
Disputed fees clause
This clause addresses how disputes over fees will be resolved.
If either party disputes any fees charged under this agreement, the disputing party must notify the other in writing within [insert time period] of receiving the invoice. The parties agree to resolve the dispute through [specific method, e.g., mediation, negotiation] before any legal action.
Minimum fees clause
This clause guarantees a minimum fee payment regardless of usage or circumstances.
[Party B] agrees to pay a minimum fee of [insert dollar amount] per [time period] under this agreement, regardless of the extent of services utilized or deliverables provided.
Excess fees clause
This clause covers charges exceeding standard or anticipated fees.
Any fees incurred by [Party A] that exceed [insert dollar amount or limit] must be pre-approved in writing by [Party B]. Unapproved excess fees will not be reimbursed.
Fees by geographic region clause
This clause adjusts fees based on the location of services or activities.
Fees payable under this agreement will vary by geographic region, with rates as follows: [insert rates by location]. All activities conducted in regions not listed will default to [insert base rate or policy].
Fixed-fees clause
This clause establishes a flat fee regardless of time or resources expended.
The total fees payable under this agreement will be fixed at [insert dollar amount], covering all services, deliverables, and related costs regardless of the time or resources required to complete the work.
Fees for renewals clause
This clause outlines fees specifically for contract renewals.
Upon renewal of this agreement, [Party B] agrees to pay a renewal fee of [insert dollar amount], which will be due within [insert time period] of the renewal date. Renewal fees are non-refundable.
Contingency-based fees clause
This clause ties fees directly to the achievement of specific goals or outcomes.
Fees under this agreement will only become payable upon the achievement of [specific goal or milestone, e.g., sales targets, regulatory approval]. If the goal is not achieved, no fees will be owed.
Scaled fees clause
This clause adjusts fees based on volume or tiered thresholds.
Fees payable under this agreement will be scaled based on the volume of services provided or goods delivered as follows: [insert tiers and rates]. The parties agree to reconcile actual usage against these thresholds quarterly.
Fees with periodic review clause
This clause provides for regular reviews and adjustments to fees.
The fees outlined in this agreement will be subject to a periodic review every [insert time period]. Adjustments may be made based on changes in market rates, scope of work, or other relevant factors, with mutual written consent.
One-time fees clause
This clause defines a one-off fee payment structure.
[Party B] agrees to pay a one-time fee of [insert dollar amount] to [Party A] for [specific services or deliverables]. No additional fees will be incurred unless otherwise agreed in writing.
Fee reduction clause
This clause allows for a decrease in fees under specific conditions.
If [specific condition, e.g., reduced scope of work, early completion] occurs, [Party A] agrees to reduce the total fees payable under this agreement by [insert percentage or dollar amount].
Conditional reimbursement fees clause
This clause ties reimbursement of fees to specific outcomes or events.
[Party B] agrees to reimburse [Party A] for fees incurred only if [specific condition, e.g., completion of deliverables, client acceptance] is met. Any fees incurred without meeting these conditions will not be reimbursed.
Fees in escrow clause
This clause requires fees to be held in escrow until certain milestones are achieved.
Fees payable under this agreement will be deposited into an escrow account managed by [insert escrow agent]. Funds will be released to [Party A] upon verification of [specific milestones or deliverables].
Fees with sunset clause
This clause sets an expiration date for the applicability of fees.
All fees payable under this agreement must be invoiced and paid by [insert date]. Any fees not invoiced or claimed by this date will be considered waived by [Party A].
Multi-party fees clause
This clause allocates fees among multiple parties involved in the agreement.
Fees incurred under this agreement will be allocated as follows: [Party A] will bear [insert percentage], [Party B] will bear [insert percentage], and any remaining fees will be split equally among all parties.
Renewable fees clause
This clause specifies fees for renewable services or terms.
For each renewal term of this agreement, [Party B] agrees to pay a renewable fee of [insert dollar amount], which will be due [insert time period] before the start of the renewal term.
Deferred fees with penalty clause
This clause defers fees but imposes penalties for late payment.
[Party B] may defer fees due under this agreement for up to [insert time period]. Deferred fees will incur a penalty of [insert percentage or dollar amount] for each [insert time period] of delay.
Non-refundable fees clause
This clause specifies that fees are non-refundable, regardless of circumstances.
All fees paid under this agreement, including but not limited to setup fees, administrative costs, and service charges, are non-refundable under any circumstances, except as required by law.
Fees based on KPIs clause
This clause ties fees to specific performance indicators.
Fees payable under this agreement will be contingent upon the achievement of key performance indicators (KPIs) outlined in [insert section]. Payments will be adjusted based on the level of KPI fulfillment.
Annual adjustment fees clause
This clause allows for yearly adjustments to fees based on pre-defined metrics.
Fees under this agreement will be adjusted annually by [insert percentage or dollar amount] based on [specific metric, e.g., inflation rate, market conditions]. Written notice of adjustments must be provided [insert time period] before the adjustment takes effect.
Hybrid fixed-variable fees clause
This clause combines fixed and variable fee structures.
Fees payable under this agreement will include a fixed component of [insert dollar amount] per [time period] and a variable component of [insert percentage] of [specific metric, e.g., revenue, usage]. Both components will be reconciled monthly.
Indexed fees clause
This clause ties fees to a specific economic index.
Fees payable under this agreement will be adjusted annually based on the [insert index, e.g., Consumer Price Index (CPI)]. Adjustments will reflect the percentage change in the index over the preceding 12 months, effective on [insert date].
Transferable fees clause
This clause allows fees to be transferred between related entities.
Fees payable under this agreement may be transferred by [Party A] to an affiliate or subsidiary upon written notice to [Party B]. The transferee will assume all fee-related obligations.
Retainer-based fees clause
This clause requires a retainer for future services.
[Party B] will provide a retainer of [insert dollar amount] to [Party A] at the start of the agreement. Fees will be deducted from the retainer as services are provided. Any unused retainer will be refunded upon termination of this agreement.
Unilateral adjustment fees clause
This clause permits one party to adjust fees unilaterally under specific circumstances.
[Party A] reserves the right to adjust fees under this agreement by [insert percentage or dollar amount] upon providing [insert time period] written notice to [Party B], subject to the conditions outlined in [insert section].
Emergency fees clause
This clause accounts for costs arising from emergency services.
In the event of an emergency requiring additional services under this agreement, [Party B] agrees to pay emergency fees calculated at [insert rate or percentage] of the standard fees, in addition to any other applicable costs.
Sliding scale fees clause
This clause adjusts fees based on the duration of the agreement.
Fees payable under this agreement will decrease by [insert percentage or dollar amount] for each [insert time period] after the initial term, up to a maximum reduction of [insert percentage].
Joint responsibility fees clause
This clause assigns shared responsibility for specific fee categories.
Both parties will be jointly responsible for [specific fees, e.g., marketing costs, regulatory filings], which will be paid equally or as agreed in writing for each expenditure.
Refundable deposit fees clause
This clause requires a refundable deposit to secure services or obligations.
[Party B] will pay a refundable deposit of [insert dollar amount] to [Party A] upon execution of this agreement. The deposit will be returned within [insert time period] after the completion of [specific condition, e.g., services or obligations].
Threshold-triggered fees clause
This clause activates fees once a specific threshold is reached.
Fees under this agreement will only become payable if [specific condition, e.g., usage exceeds a set limit, revenue reaches a threshold]. No fees will be charged below the stated threshold.
Operational fees clause
This clause allocates responsibility for day-to-day operational costs.
[Party B] agrees to pay all operational fees associated with the performance of this agreement, including [insert examples, e.g., facility rentals, utilities, or equipment maintenance], as invoiced by [Party A].
Conditional waiver of fees clause
This clause waives fees under specific conditions.
[Party A] agrees to waive all fees payable under this agreement if [specific condition, e.g., early termination, achievement of specific milestones] occurs. This waiver will not apply to any fees incurred prior to the stated condition.
Usage-based fees clause
This clause ties fees to the actual use of goods or services.
Fees payable under this agreement will be calculated based on the actual usage of [specific goods or services], as measured and documented by [Party A]. Invoices will reflect usage on a monthly basis.
Fixed-term fees clause
This clause locks fees for a specified duration.
The fees outlined in this agreement will remain fixed for a term of [insert duration]. Any adjustments or renegotiations will only occur after the expiration of this fixed term.
Compliance fees clause
This clause assigns responsibility for fees related to regulatory compliance.
[Party B] agrees to pay all fees associated with ensuring compliance with applicable laws and regulations under this agreement, including [insert specific examples, e.g., permits, certifications].
No hidden fees clause
This clause ensures transparency in all fees.
No additional fees beyond those explicitly outlined in this agreement will be charged to [Party B]. Any proposed fees must be disclosed in writing and agreed upon before implementation.
Fees with cap and reconciliation clause
This clause imposes a cap on fees with periodic reconciliation.
The total fees payable under this agreement will not exceed [insert dollar amount] during any [time period, e.g., quarter, year]. Any unused portion of the fee cap will be reconciled and credited towards the next billing cycle.
Priority service fees clause
This clause allows for additional fees in exchange for priority services.
[Party B] agrees to pay an additional priority service fee of [insert dollar amount] to [Party A] for expedited handling of [specific service or deliverable]. This fee is non-refundable and payable in advance of service initiation.
Annual lump-sum fees clause
This clause consolidates all fees into a single annual payment.
All fees payable under this agreement will be consolidated into a single annual payment of [insert dollar amount], due on [insert date]. This lump-sum payment covers all services and deliverables for the year.
Separate billing for extraordinary fees clause
This clause separates extraordinary fees from regular billing.
Fees arising from extraordinary circumstances, such as emergency work or changes in scope, will be billed separately and will not be included in regular invoices. [Party B] agrees to pay such fees within [insert time period] upon receipt of an itemized invoice.
Shared savings fees clause
This clause ties fees to cost savings achieved through the agreement.
[Party A] will be entitled to [insert percentage]% of any cost savings realized by [Party B] as a direct result of services provided under this agreement. Savings will be calculated and paid quarterly.
Non-transferable fees clause
This clause specifies that fees are non-transferable to third parties.
Fees payable under this agreement are exclusive to [Party B] and cannot be assigned, transferred, or applied to third-party obligations without the prior written consent of [Party A].
Future scope fees clause
This clause includes fees for potential future expansions.
Fees for services or deliverables not explicitly outlined in this agreement will be negotiated separately and documented in an addendum. No such fees will apply without prior written approval from both parties.
Multi-phase fees clause
This clause ties fees to distinct phases of the project.
Fees under this agreement will be structured in phases, with [insert dollar amount] due upon the completion of each phase as outlined in [specific section]. Payment for each phase must be made within [insert time period] of invoice receipt.
Termination fees clause
This clause specifies fees due upon early termination.
If this agreement is terminated before the completion of services, [Party B] agrees to pay termination fees equal to [insert percentage or dollar amount], representing [specific costs, e.g., work performed, unrecoverable expenses].
Time-tracking fees clause
This clause ties fees to documented time spent on services.
Fees under this agreement will be calculated based on documented hours spent by [Party A] on [specific services or activities], at a rate of [insert dollar amount] per hour. Time-tracking records will accompany all invoices.
Hybrid subscription fees clause
This clause combines subscription and per-use fees.
[Party B] agrees to pay a base subscription fee of [insert dollar amount] per [time period] and additional usage fees of [insert dollar amount] for each instance exceeding the base allowance, as outlined in [specific section].
Payment delay adjustment fees clause
This clause adjusts fees for payment delays.
Fees under this agreement will increase by [insert percentage or dollar amount] for every [insert time period] of delay in payment beyond the due date. Adjusted fees will be included in the next invoice cycle.
Volume discount fees clause
This clause reduces fees based on volume thresholds.
[Party B] will receive a discount of [insert percentage]% on fees for each [insert volume threshold, e.g., unit purchased, service hour] exceeding [insert threshold]. Discounts will be applied retroactively for the billing period.
Service-level agreement fees clause
This clause ties fees to meeting specific service levels.
Fees payable under this agreement are contingent upon [Party A] maintaining the service levels outlined in [specific section]. [Party B] reserves the right to withhold or adjust fees if service levels fall below agreed-upon standards.
Deposit with forfeiture fees clause
This clause includes a non-refundable deposit under specific conditions.
[Party B] agrees to pay a deposit of [insert dollar amount] upon execution of this agreement. The deposit will be forfeited if [specific condition, e.g., termination before completion, failure to meet obligations] occurs.
Outcome-based fees clause
This clause ties fees directly to achieving agreed outcomes.
Fees payable under this agreement will be contingent on the successful achievement of [specific outcome, e.g., project milestones, sales targets]. No fees will be owed if the outcome is not met within the agreed timeframe.
Fees escalation clause
This clause allows for incremental fee increases over time.
Fees under this agreement will increase by [insert percentage or dollar amount] every [insert time period, e.g., year, quarter] starting from [insert date]. Written notice of the adjustment must be provided [insert time period] in advance.
Reserve fees clause
This clause requires the establishment of a reserve fund for future fees.
[Party B] agrees to deposit [insert dollar amount] into a reserve fund managed by [Party A] to cover future fees under this agreement. The fund will be reconciled quarterly, with any excess refunded at the end of the term.
Pay-as-you-go fees clause
This clause implements a usage-based fee structure with immediate payments.
Fees under this agreement will be calculated and paid on a pay-as-you-go basis. [Party B] agrees to pay [insert dollar amount] for each instance of service or usage at the time of delivery.
Contingent fee reduction clause
This clause allows for reducing fees if specific conditions are met.
Fees under this agreement will be reduced by [insert percentage or dollar amount] if [specific condition, e.g., early completion, achieving cost savings] is met. The reduction will be applied to the next invoice.
Overpayment credit clause
This clause provides credits for overpaid fees.
Any overpayments made by [Party B] under this agreement will be credited toward future invoices or refunded upon request, as determined by [Party A]. Overpayments will be documented and communicated within [insert time period].
Cross-subsidization fees clause
This clause allows one service’s fees to subsidize another.
Fees generated from [specific service] will subsidize the costs of [another service], ensuring that no additional charges are incurred by [Party B] for the subsidized service.
Fees for subcontractor use clause
This clause outlines how fees are handled when subcontractors are involved.
If [Party A] engages subcontractors to fulfill obligations under this agreement, fees payable to subcontractors will be invoiced separately and require pre-approval by [Party B] before payment.
Accelerated payment fees clause
This clause provides an incentive for early payment of fees.
[Party B] will receive a discount of [insert percentage or dollar amount] on fees paid in advance of their due date. Accelerated payments must be approved in writing by [Party A].
Conditional escalation fees clause
This clause allows fees to increase under specific conditions.
Fees payable under this agreement will escalate by [insert percentage or dollar amount] if [specific condition, e.g., additional scope of work, regulatory changes] occurs. Escalation will be limited to [insert cap] and must be agreed upon in writing.
Fees for non-performance clause
This clause imposes a fee for failure to meet agreed obligations.
[Party B] agrees to pay a non-performance fee of [insert dollar amount] if [specific condition, e.g., failure to meet deadlines, breach of terms] occurs. This fee is in addition to any other remedies available under the agreement.
Fees with pre-determined milestones clause
This clause ties payments to specific milestones.
Fees under this agreement will be paid upon the completion of pre-determined milestones, as follows: [insert milestones and corresponding fees]. Payment will be due within [insert time period] of achieving each milestone.
Separate fees for intellectual property clause
This clause handles fees specifically for IP-related matters.
Fees for the use or transfer of intellectual property under this agreement will be billed separately from other fees. The total IP-related fees will be [insert dollar amount or percentage] and invoiced upon execution of the agreement.
No fee adjustment clause
This clause locks fees for the entire term of the agreement.
Fees payable under this agreement will remain fixed for the entire term and will not be subject to adjustment, regardless of changes in market conditions, scope, or other circumstances.
Regional adjustment fees clause
This clause varies fees based on geographic regions.
Fees under this agreement will differ based on the region where services are rendered or goods are delivered. The fee structure is as follows: [insert regions and corresponding rates]. Any services outside these regions will require separate negotiation.
Provisional fees clause
This clause allows for temporary fees until the final structure is agreed upon.
Provisional fees of [insert dollar amount] will apply under this agreement until the final fee structure is agreed upon by both parties in writing. Adjustments to provisional fees will be reconciled retroactively.
Dedicated account management fees clause
This clause outlines fees for exclusive account management services.
[Party B] agrees to pay an additional fee of [insert dollar amount] for a dedicated account manager assigned by [Party A]. This fee will be invoiced monthly, in addition to other fees under this agreement.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.