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Legal AgreementsEmployment Contracts

Referral Agreement

This Referral Agreement template is used when an individual or entity refers potential clients or customers to another business in exchange for a commission or fee. It outlines the terms and conditions of the referral relationship.

Updated 15d ago
referral agreementcommissionpartnershipbusiness agreementsouthern AfricacontractSME

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

{{date}}

Parties

This Referral Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}} (the "Effective Date")

BETWEEN:

{{referring_party_legal_name}}, a [company type, e.g., private limited company] duly incorporated under the laws of {{country_of_incorporation}}, with its registered office located at {{referring_party_address}} (hereinafter referred to as "Referrer");

AND

{{receiving_party_legal_name}}, a [company type, e.g., private limited company] duly incorporated under the laws of {{country_of_incorporation}}, with its registered office located at {{receiving_party_address}} (hereinafter referred to as "Recipient").

Collectively referred to as “the Parties” or individually as “Party.”

Recitals

WHEREAS, the Referrer is engaged in the business of {{referrer_business_description}} and has established a network of contacts that may include potential clients interested in the Recipient’s services/products.

WHEREAS, the Recipient is engaged in the business of {{recipient_business_description}}.

WHEREAS, the Particles desire to establish a referral relationship whereby the Referrer will refer potential clients to the Recipient in exchange for a referral fee, subject to the terms and conditions set forth in this Agreement.

1. Referral Obligations of the Referrer

1.1. The Referrer agrees to use its best efforts to identify and refer potential clients (each a "Referred Client") to the Recipient.

1.2. The Referrer shall only refer clients who have expressed an initial interest in the Recipient's services/products and have provided their explicit consent to be referred.

1.3. For each referral, the Referrer shall provide the Recipient with the Referred Client's name, contact information ({{referred_client_email}}, {{referred_client_phone_number}}), and a brief description of their needs or interest. The submission of a referral must be made through {{agreed_referral_submission_method}}.

1.4. The Referrer shall not misrepresent the Recipient's services/products or make any promises or guarantees on behalf of the Recipient.

2. Recipient's Obligations

2.1. Upon receiving a referral, the Recipient shall promptly contact the Referred Client within {{number_of_days}} business days.

2.2. The Recipient shall maintain accurate records of all referred clients and their status (e.g., contacted, engaged, converted).

2.3. The Recipient shall keep the Referrer informed of the status of each referred client, particularly concerning the successful conversion into a paying client.

3. Referral Fees and Payment

3.1. The Recipient shall pay the Referrer a referral fee of {{referral_fee_percentage}}% of the net revenue generated from any Referred Client who successfully enters into a contract or makes a purchase with the Recipient (the "Referral Fee").

3.2. The Referral Fee shall only be payable for Net Revenue directly attributable to the initial referral and for services/products delivered within {{number_of_months}} months from the date of the initial referral.

3.3. Payment of the Referral Fee shall be made within {{number_of_days}} days of the Recipient receiving payment from the Referred Client. Payments shall be made via {{payment_method}} to the Referrer's nominated bank account: {{referrer_bank_account_details}}.

3.4. The Recipient shall provide the Referrer with a detailed statement outlining the calculation of the Referral Fee for each payment period.

4. Term and Termination

4.1. This Agreement shall commence on the Effective Date and continue for a period of {{agreement_term_length}} unless terminated earlier in accordance with the provisions herein.

4.2. Either Party may terminate this Agreement by providing {{notice_period_days}} days' written notice to the other Party.

4.3. This Agreement may be terminated immediately by either Party upon a material breach of any terms herein by the other Party, provided that the breaching Party fails to remedy such breach within {{cure_period_days}} days of receiving written notice thereof.

4.4. Termination of this Agreement shall not affect any Referral Fees accrued prior to the termination date.

5. Confidentiality

5.1. Both Parties agree to keep all confidential information, including but not limited to business strategies, client lists, and financial information, strictly confidential.

5.2. This obligation of confidentiality shall survive the termination of this Agreement for a period of {{confidentiality_period_years}} years.

6. Governing Law and Dispute Resolution

6.1. This Agreement shall be governed by and construed in accordance with the laws of {{country_of_governing_law}}.

6.2. Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration in {{city_of_arbitration_or_court}} in accordance with the rules of {{arbitration_institution_name}}.

7. Entire Agreement

This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, and agreements, whether written or oral.

Signature Block

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first written above.

FOR THE REFERRER:

_____________________________

Name: {{referrer_signatory_name}}

Title: {{referrer_signatory_title}}

FOR THE RECIPIENT:

_____________________________

Name: {{recipient_signatory_name}}

Title: {{recipient_signatory_title}}

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