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QI am looking to raise capital from investors for a cafe business (owners based in Mumbai),Can you guys help a sister out and tell me how to draft a contract that is legally binding which ensure n% of the money raised to be credited to me as service charge(I will be introducing investors ,making pitch deck,provide support in communication and deal facilitation) .Below is the draft given by chatgpt is this valid if both parties sign, there are 3 stakeholders from their business should all three of them sign for such a contract:
**FINANCIAL ADVISOR AGREEMENT**
This Financial Advisor Agreement (“Agreement”) is entered into on this ___ day of ____________, 20__ (the “Effective Date”), by and between:
**PARTIES:**
[Client Name], a company incorporated under the laws of India, having its registered office at [Client Address] (hereinafter referred to as the “Client”, which expression shall, unless repugnant to the context or meaning thereof, be deemed to include its successors and permitted assigns).
[Your Full Name], residing at [Advisor Address] (hereinafter referred to as the “Advisor”, which expression shall include their legal heirs, successors, and permitted assigns).
**1. ENGAGEMENT**
The Client hereby engages the Advisor to provide strategic advisory services in connection with the Client’s efforts to raise funds from potential investors. The Advisor accepts the engagement on the terms and conditions set forth in this Agreement.
**2. SCOPE OF SERVICES**
The Advisor agrees to:
– Assist in the preparation of investment materials, including pitch decks and financial models;
– Provide strategic advice on valuation, structure, and fundraising approach;
– Introduce or refer potential investors from the Advisor’s professional network;
– Provide support in investor communication and deal facilitation.The Advisor shall not be required to invest funds or guarantee any capital raise.
**3. COMPENSATION**
The Client agrees to pay the Advisor a success fee of eight percent (8%) of the total gross capital raised by the Client from any investor introduced directly or indirectly by the Advisor.
**3.1 Payment Terms**
The success fee shall become due and payable within two(2) business days of receipt of funds by the Client in their designated account. Payments shall be made to the Advisor’s bank account as follows:
Bank Name: _____________
Account Holder: _____________
Account Number: _____________
IFSC Code: _____________**4. NON-CIRCUMVENTION**
The Client agrees not to bypass, circumvent, or directly engage with any investor introduced by the Advisor, without the Advisor’s written consent, for a period of twelve (12) months from the date of introduction. If such a transaction occurs, the Advisor shall still be entitled to the full success fee.
**5. TERM AND TERMINATION**
This Agreement shall remain in effect for six (6) months from the Effective Date and may be extended in writing. Either party may terminate this Agreement with thirty (30) days’ written notice. Termination does not affect the Advisor’s right to compensation for funds raised during the term or through introductions made during the term.
**6. CONFIDENTIALITY**
Both parties agree to maintain the confidentiality of all information shared pursuant to this Agreement and not to disclose such information to any third party without prior written consent, except as required by law.
**7. INDEPENDENT CONTRACTOR**
The Advisor is acting as an independent contractor and not as an employee, partner, or agent of the Client. This Agreement does not constitute a joint venture or partnership.
**8. COMPLIANCE WITH LAW**
The Advisor shall not act as a broker, dealer, or investment intermediary and shall not guarantee investment outcomes. All services will be in accordance with applicable laws, including regulations under the Securities and Exchange Board of India (SEBI).
**9. GOVERNING LAW AND JURISDICTION**
This Agreement shall be governed by the laws of India. All disputes arising under this Agreement shall be resolved through binding arbitration in [City], under the Arbitration and Conciliation Act, 1996, with a sole arbitrator mutually appointed by the parties.
**10. ENTIRE AGREEMENT**
This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior oral or written communications.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first written above.
Signed for and on behalf of the Client
Signature: ______________________
Name:
Title:
Date:Signed by the Advisor
Signature: ______________________
Name:
Date: -
TI would suggest you to add these clauses
1.minimum fee guarantee
2.non exclusivity
3.delayed payment interest-
Qwhat would you suggest a minimum fee is for making the pitch deck, finding investors and communicating ;they are looking to raise 1Cr (I am completely noob regarding this).
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