The Simple Referral Fee Agreement is essential for businesses operating in Indonesia that wish to formalize their referral partnerships and commission structures. This document is commonly used when one party (the referrer) agrees to recommend potential clients or business opportunities to another party (the recipient) in exchange for a fee. The agreement ensures compliance with Indonesian commercial law, including the Civil Code (KUHPer) and relevant trade regulations. It provides clear terms for referral processes, fee calculations, payment schedules, and dispute resolution mechanisms. The document is particularly relevant in today's interconnected business environment where formal referral networks are increasingly important for business growth and market expansion in Indonesia.
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1. Parties: Identifies and provides full details of the referring party and the recipient party, including registration numbers and addresses
2. Background: Sets out the context of the agreement, including the recipient's business and the referring party's ability to refer potential customers
3. Definitions: Defines key terms used throughout the agreement, including 'Referral', 'Referral Fee', 'Successful Transaction'
4. Appointment and Scope: Establishes the non-exclusive nature of the referral relationship and scope of referral services
5. Referral Process: Details the procedure for making and accepting referrals, including any notification requirements
6. Referral Fees and Payment Terms: Specifies the fee structure, calculation method, payment timing, and invoicing process
7. Obligations of the Referring Party: Lists the referring party's duties, including quality of referrals and compliance with laws
8. Obligations of the Recipient: Details the recipient's responsibilities regarding referred customers and payment of fees
9. Term and Termination: Specifies the agreement duration and grounds for termination
10. Confidentiality: Establishes obligations regarding confidential information exchange
11. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and outlines dispute resolution process
1. Non-Solicitation: Include when parties wish to prevent direct solicitation of each other's customers or employees
2. Intellectual Property Rights: Include when the agreement involves use of trademarks or other IP for referral activities
3. Data Protection: Include when referral process involves sharing of personal data
4. Force Majeure: Include when parties want specific provisions for unforeseeable circumstances
5. Insurance Requirements: Include when specific insurance coverage is required for referral activities
6. Compliance with Anti-Bribery Laws: Include when referrals involve government entities or regulated industries
7. Marketing and Promotion: Include when specific guidelines for promotional activities are needed
1. Schedule 1 - Fee Structure: Detailed breakdown of referral fees, including percentages, tiers, and calculation methods
2. Schedule 2 - Referral Process Flow: Step-by-step procedure for making and processing referrals
3. Schedule 3 - Approved Marketing Materials: List of approved marketing materials and usage guidelines
4. Appendix A - Referral Report Template: Standard format for tracking and reporting referrals
5. Appendix B - Contact Details: Key contact persons and their details for both parties
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