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Referral Agreement

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

Updated 15d ago
referral agreementpartnershipcommissionbusiness developmentSMESouthern Africa

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

Date: {{date}}

Parties

This Referral Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}}, by and between:

**{{referrer_company_name}}**, a company duly registered under the laws of {{referrer_jurisdiction}}, with its principal place of business at {{referrer_address}} (hereinafter referred to as "the Referrer"), and

**{{referred_company_name}}**, a company duly registered under the laws of {{referred_jurisdiction}}, with its principal place of business at {{referred_address}} (hereinafter referred to as "the Company").

Background

A. The Referrer is in the business of {{referrer_business_description}} and has established a network of contacts and clients.

B. The Company is in the business of {{company_business_description}} and seeks to expand its client base.

C. The Referrer wishes to refer potential clients to the Company, and the Company wishes to compensate the Referrer for successful referrals, all in accordance with the terms and conditions set forth in this Agreement.

Referral Process

3.1. The Referrer shall identify and introduce potential clients ("Referred Clients") to the Company.

3.2. All referrals shall be made in writing via email to {{company_referral_email}} or through a mutually agreed-upon platform, providing the name, contact details, and a brief description of the potential needs of the Referred Client.

3.3. The Company shall acknowledge receipt of each referral within {{acknowledgement_days}} business days.

3.4. The Company reserves the right to accept or reject any referred client at its sole discretion. The Company will inform the Referrer of its decision within {{decision_days}} business days of acknowledgment.

Referral Fees and Payment

4.1. For each Referred Client that enters into a definitive agreement with the Company for the provision of {{service_or_product_type}} within {{validity_days}} days of the initial referral date, the Referrer shall be entitled to a referral fee.

4.2. The referral fee shall be {{referral_fee_percentage}}% of the net revenue received by the Company from the Referred Client for the first {{referral_fee_duration}} of their engagement, excluding any taxes, refunds, or discounts.

4.3. Payment of referral fees shall be made within {{payment_days}} days of the end of each calendar month in which the Company receives payment from the Referred Client.

4.4. All payments shall be made in {{currency}} to the Referrer's nominated bank account: {{bank_name}}, Account Name: {{account_name}}, Account Number: {{account_number}}, Swift Code: {{swift_code}}.

Term and Termination

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

5.2. Either party may terminate this Agreement by providing {{notice_period}} days' written notice to the other party.

5.3. Termination shall not affect the Referrer's right to receive referral fees for Referred Clients introduced prior to the effective date of termination, provided such clients enter into an agreement with the Company within the validity period specified in Clause 4.1.

Confidentiality

6.1. Both parties agree to keep all information relating to clients, business operations, and the terms of this Agreement confidential.

6.2. Neither party shall disclose any confidential information to any third party without the prior written consent of the other party.

Dispute Resolution

7.1. 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 under the rules of the Arbitration Foundation of Southern Africa (AFSA), which rules are deemed to be incorporated by reference into this clause.

7.2. The number of arbitrators shall be one.

7.3. The seat of the arbitration shall be {{arbitration_city}}, {{arbitration_country}}.

7.4. The language to be used in the arbitral proceedings shall be English.

Governing Law

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

Entire Agreement

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

Signature Block

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

**For the Referrer:**

_____________________________

Name: {{referrer_signatory_name}}

Title: {{referrer_signatory_title}}

Date: _____________________________

**For the Company:**

_____________________________

Name: {{company_signatory_name}}

Title: {{company_signatory_title}}

Date: _____________________________

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