No cure no pay
Also called:remuneration/payment based on results
The term "no cure no pay" refers to a specific revenue model. The agreement in this construction is that the service provider is paid only when the assignment is completed successfully. Thus, with a no cure no pay construction, there is an obligation of result. This construction is seen as the opposite of an effort obligation. Indeed, in the latter case, the service provider receives compensation if an effort is made. This is also the case if the ultimate goal is not achieved. With a no cure no pay construction, it is important to lay down the conditions in as much detail as possible in order to properly formulate the (amount of the) performance linked to this construction. This prevents misunderstandings afterwards.
The "no cure no pay" construction
A no cure no pay construction is frequently used in the contracting of ship salvage, in the recruitment industry, in brokerage, debt collection and other sectors where mediation plays an important role. In the Dutch legal profession, however, this form of remuneration is not allowed. However, lawyers are allowed to offer their services in this way.
