Sales Referral Agreements are essential documents for businesses seeking to expand their customer base through formal referral partnerships. This contract type, governed by English and Welsh law, establishes clear parameters for referral relationships, including commission structures, referral processes, and compliance requirements. The agreement protects both parties' interests while ensuring compliance with relevant UK regulations, including data protection and financial services laws where applicable. It is particularly valuable for businesses implementing structured referral programs or building partner networks.
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1. Parties: Identifies and defines the contracting parties
2. Background: Explains context and purpose of the referral arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Referral Terms: Core terms of the referral relationship including process and requirements
5. Commission Structure: Details of payment terms and commission calculations
6. Term and Termination: Duration of agreement and termination provisions
7. Confidentiality: Obligations regarding confidential information
1. Non-Compete: Restrictions on competitive activities - include when protecting against competition is crucial
2. Territory Restrictions: Geographical limitations on referral activities - include when referrals are to be limited to specific regions
3. Marketing Guidelines: Rules for marketing and promotion - include when referrer will conduct marketing activities
1. Commission Schedule: Detailed breakdown of commission rates and calculations
2. Referral Process: Step-by-step procedure for making and processing referrals
3. Service Level Agreement: Performance metrics and service standards
4. Data Processing Agreement: Terms for handling personal data in compliance with GDPR
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