Referral Fee Agreement

The Referral Fee Agreement is a document that outlines the terms and conditions between two parties, the Seller and the Referrer, regarding the referral of potential customers to the Seller in exchange for a referral fee. The document begins with an interpretation section, which defines key terms such as 'goods or services' and 'value of goods or services'. This ensures that both parties have a clear understanding of the terminology used throughout the agreement.

 

The agreement then proceeds to outline the referral term, specifying the duration of the agreement and the responsibilities of the Referrer in sourcing customers for the Seller. The Referral Fee section details how the referral fee will be calculated, whether it is a fixed fee per customer referred or a percentage of the net value of goods or services sold. It also specifies the payment terms and the process for issuing invoices and making payments.

 

The document further outlines the responsibilities of both parties. The Referrer agrees to use its existing connections and channels to secure business for the Seller, while the Seller takes on the sole responsibility of performing or selling the agreed goods or services to the customer. The Seller is also required to comply with any applicable statutes, regulations, or bylaws related to the goods and services.

 

Confidentiality is addressed in a separate section, which states that the Referrer must treat any confidential information provided by the Seller as confidential and not disclose it to any third parties without prior written consent. However, the Referrer may disclose relevant parts of the confidential information to customers and potential customers in order to promote the sale of the products.

 

The agreement concludes with general provisions, including the relationship between the parties as independent contractors, the method of giving notices, and the consequences of termination. It is stated that upon termination, the Referrer must cease promoting the goods or services and will have no claim against the Seller for compensation, except for any unpaid referral fees.

 

Overall, the Referral Fee Agreement is a comprehensive document that covers all aspects of the referral arrangement between the Seller and the Referrer, ensuring clarity and protection for both parties.

How to use this document?

To use the Referral Fee Agreement, follow these steps:

1. Interpretation: Familiarize yourself with the definitions provided in the agreement, such as 'goods or services' and 'value of goods or services'. This will help you understand the terminology used throughout the document.

2. Referral Term: Determine the duration of the agreement and whether it will be automatically renewed or require written extension. Both parties must agree on the terms of the referral term.

3. Referral Fee: Decide on the method of calculating the referral fee, whether it will be a fixed fee per customer referred or a percentage of the net value of goods or services sold. Establish the payment terms and the process for issuing invoices and making payments.

4. Responsibilities: Clarify the responsibilities of both parties. The Referrer should use its existing connections and channels to secure business for the Seller, while the Seller takes on the sole responsibility of performing or selling the agreed goods or services.

5. Confidentiality: Understand the confidentiality obligations outlined in the agreement. The Referrer must treat any confidential information provided by the Seller as confidential and not disclose it to any third parties without prior written consent.

6. General Provisions: Familiarize yourself with the general provisions, including the relationship between the parties, the method of giving notices, and the consequences of termination. Ensure that you comply with these provisions throughout the duration of the agreement.

By following these steps, you can effectively use the Referral Fee Agreement to establish a referral arrangement between the Seller and the Referrer, protecting the interests of both parties.