Referral Partner Agreement for the United Kingdom

Referral Partner Agreement Template for England and Wales

A Referral Partner Agreement is a legally binding contract governed by English and Welsh law that establishes the terms and conditions under which one party (the Referral Partner) agrees to refer potential clients or customers to another party (the Service Provider) in exchange for compensation, typically in the form of commission. The agreement covers essential aspects such as referral processes, commission structures, obligations of both parties, data protection requirements, and confidentiality provisions. It includes specific provisions to ensure compliance with UK regulations, including GDPR and relevant sector-specific requirements.

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What is a Referral Partner Agreement?

The Referral Partner Agreement is designed for businesses seeking to formalize their referral relationships under English and Welsh law. This agreement is particularly valuable when establishing commercial partnerships where one party wishes to generate business for another in return for commission or other compensation. It addresses key aspects such as referral mechanisms, payment terms, compliance requirements, and mutual obligations. The document ensures clarity in the referral relationship while maintaining compliance with UK regulatory requirements, including data protection and sector-specific regulations. This agreement is commonly used across various industries and can be tailored to specific business needs while maintaining its core purpose of establishing a clear framework for referral partnerships.

What sections should be included in a Referral Partner Agreement?

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of referral services

5. Referral Process: Detailed process for making and handling referrals

6. Commission Structure: Payment terms and commission calculations

7. Obligations of Parties: Responsibilities of both referrer and recipient

8. Term and Termination: Duration and termination provisions

9. Confidentiality: Protection of confidential information

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

1. Non-Compete: Restrictions on competitive activities (include when exclusivity or market protection is required)

2. White Labelling: Terms for branded services (include when services are provided under partner's brand)

3. Service Levels: Performance standards and metrics (include when specific service standards need to be maintained)

What schedules should be included in a Referral Partner Agreement?

1. Commission Schedule: Detailed breakdown of commission rates and calculations

2. Referral Process: Step-by-step referral procedures and requirements

3. Data Processing Agreement: GDPR-compliant data processing terms

4. Service Level Agreement: Detailed service standards and metrics 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

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

UK GDPR and Data Protection Act 2018: Legislation governing the processing, handling, and protection of personal data, including requirements for data sharing between partners and ensuring proper data protection agreements are in place

Competition Act 1998: Ensures the referral arrangement does not create anti-competitive practices or restrict market competition through exclusive arrangements or market dominance

Consumer Rights Act 2015: Protects consumer interests if the referral partnership involves B2C transactions, ensuring transparency and fairness in consumer dealings

Financial Services and Markets Act 2000: Regulates financial services activities and referrals, particularly important if the partnership involves regulated financial products or services

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract, relevant for referral arrangements where third party rights might be created

Bribery Act 2010: Ensures referral fees and commission structures do not constitute illegal kickbacks or improper incentives

Electronic Commerce (EC Directive) Regulations 2002: Governs electronic commerce aspects of the referral relationship, including online referral mechanisms and electronic communications

Business Protection from Misleading Marketing Regulations 2008: Ensures truthful and accurate marketing practices in B2B relationships and referral marketing activities

Value Added Tax Act 1994: Governs VAT treatment of referral fees and commission payments between partners

Privacy and Electronic Communications Regulations (PECR): Regulates electronic marketing and communications aspects of the referral relationship, including requirements for consent in electronic marketing

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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