Sales Referral Agreement for United Arab Emirates

Sales Referral Agreement Template for United Arab Emirates

A Sales Referral Agreement under UAE law establishes a formal relationship between a principal company and a referrer who introduces potential customers or business opportunities. The agreement defines the terms under which referrals are made, including commission structures, payment terms, and performance expectations. Governed by UAE Federal Laws, particularly the Civil Code and Commercial Code, this agreement ensures compliance with local commercial agency regulations while protecting both parties' interests. It includes detailed provisions for territory definition, referral processes, confidentiality obligations, and dispute resolution mechanisms in accordance with UAE legal requirements.

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What is a Sales Referral Agreement?

The Sales Referral Agreement is essential for businesses operating in the UAE who wish to expand their market reach through formal referral partnerships. This document type is commonly used when companies want to leverage external partners' networks and relationships to generate new business opportunities while maintaining legal compliance with UAE regulations. The agreement covers crucial aspects such as commission structures, referral processes, territorial rights, and compliance requirements under UAE Federal Laws. It is particularly important in the UAE market where business relationships often rely on personal connections and introductions. The document includes specific provisions required by UAE law regarding commercial agency relationships, electronic transactions, and data protection, making it suitable for both local and international business arrangements. The Sales Referral Agreement helps protect both parties' interests while providing a clear framework for successful business collaboration.

What sections should be included in a Sales Referral Agreement?

1. Parties: Identification of the principal company and the referrer, including full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including 'Qualified Referral', 'Services', 'Territory', and 'Commission'

4. Appointment and Scope: Terms of referrer's appointment, scope of authority, and territory coverage

5. Referrer's Obligations: Detailed responsibilities of the referrer, including referral process and reporting requirements

6. Principal's Obligations: Responsibilities of the principal company, including support and training provisions

7. Commission Structure: Detailed explanation of commission calculations, rates, and qualifying criteria

8. Payment Terms: Terms for commission payments, including timing, method, and currency

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

12. Representations and Warranties: Basic warranties from both parties regarding authority and capacity

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment

What sections are optional to include in a Sales Referral Agreement?

1. Intellectual Property Rights: Include when the referral relationship involves use of trademarks or other IP

2. Data Protection: Include when personal data processing is involved in the referral process

3. Marketing and Promotion: Include when referrer will be involved in marketing activities

4. Training and Support: Include when principal provides specific training programs

5. Insurance: Include when referrer needs to maintain specific insurance coverage

6. Compliance with Anti-Bribery Laws: Include for international referral relationships

7. Minimum Performance Requirements: Include when setting specific performance targets

8. Dispute Resolution: Include specific arbitration or mediation procedures if desired

What schedules should be included in a Sales Referral Agreement?

1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products/services

2. Schedule 2 - Territory Definition: Detailed description of geographical or market territory covered

3. Schedule 3 - Referral Process: Step-by-step process for submitting and tracking referrals

4. Schedule 4 - Reporting Requirements: Templates and timing for required reports

5. Schedule 5 - Approved Marketing Materials: List of approved marketing materials and usage guidelines

6. Appendix A - Contact Details: Key contact information for both parties

7. Appendix B - Service Level Agreement: Performance standards and response times if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant Industries

Information Technology

Professional Services

Financial Services

Real Estate

Manufacturing

Healthcare

Telecommunications

Construction

Education

Management Consulting

Insurance

Logistics and Supply Chain

Relevant Teams

Legal

Sales

Business Development

Compliance

Finance

Operations

Commercial

Partner Management

Account Management

Contract Administration

Relevant Roles

Business Development Manager

Sales Director

Channel Manager

Partnership Manager

Chief Commercial Officer

Legal Counsel

Compliance Officer

Managing Director

CEO

Sales Operations Manager

Account Manager

Regional Sales Manager

Chief Revenue Officer

Contract Manager

Business Development Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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