A Finder Fee Agreement is a legally binding contract that lays out the terms and conditions of paying a commission or fee to a third-party facilitator for finding, initiating, or negotiating transactions. The idea behind such an agreement is to provide an incentive for someone to locate a successful business deal and are commonly used in mergers, acquisitions, investments, and certain sales transactions. Such agreements typically specify how much of a fee is given, when the fee should be paid, who is responsible for payment, how the fee will be calculated, and other matters related to the arrangement. Depending on the circumstances, these types of agreements can be beneficial for all parties involved.