Referral Fee Agreement for India

Referral Fee Agreement Template for India

This document establishes a formal referral fee arrangement between parties under Indian law, where one party agrees to refer potential clients or business opportunities to another party in exchange for a predetermined fee or commission. The agreement outlines the specific terms and conditions of the referral relationship, including the referral process, fee structure, payment terms, and compliance requirements under Indian legislation. It incorporates necessary provisions to ensure compliance with Indian Contract Act, 1872, relevant tax regulations, and applicable industry-specific requirements while providing clear guidelines for both parties' obligations and rights.

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What is a Referral Fee Agreement?

The Referral Fee Agreement is essential for businesses operating in India that wish to formalize their referral partnerships and commission structures. This document is typically used when one party (the referrer) has the capability to introduce potential clients or business opportunities to another party (the recipient) and wishes to receive compensation for successful referrals. The agreement ensures clarity in the referral relationship by defining what constitutes a qualified referral, establishing fee structures, and outlining payment terms while ensuring compliance with Indian legal requirements including tax regulations and industry-specific guidelines. It's particularly important in regulated industries where transparency in referral relationships is mandatory and helps protect both parties' interests by clearly documenting their rights, obligations, and the mechanisms for dispute resolution.

What sections should be included in a Referral Fee Agreement?

1. Parties: Identifies and provides full details of the referring party and the recipient party

2. Background: Explains the context of the agreement and the parties' intentions to enter into a referral arrangement

3. Definitions: Defines key terms used throughout the agreement including 'Referral', 'Referral Fee', 'Successful Referral', etc.

4. Scope of Referral Arrangement: Details the products/services covered under the referral arrangement and the territory/market applicable

5. Referral Process: Outlines the specific mechanism for making and tracking referrals

6. Referral Fee Structure: Specifies the fee calculation method, payment terms, and conditions for fee eligibility

7. Obligations of Parties: Lists the responsibilities and commitments of both parties

8. Term and Termination: Specifies the duration of the agreement and conditions for termination

9. Confidentiality: Protects confidential information shared during the referral process

10. Representations and Warranties: States the parties' assurances regarding their capacity and authority

11. Indemnification: Outlines mutual indemnification obligations

12. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for dispute resolution

13. General Provisions: Includes standard boilerplate clauses like notices, amendments, and severability

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

1. Non-Solicitation: Prevents parties from directly soliciting each other's employees or clients - include when dealing with competitive businesses

2. Exclusivity: Establishes exclusive referral rights - include when exclusivity is part of the business arrangement

3. Marketing and Promotion: Details permitted marketing activities and use of trademarks - include when referrer will actively promote the recipient's services

4. Data Protection: Addresses handling of personal data - include when referrals involve sharing of personal information

5. Training and Support: Outlines any training or support provided - include when recipient will provide training to referrer

6. Compliance with Anti-Corruption Laws: Details specific anti-corruption obligations - include when dealing with government entities or high-risk sectors

7. Force Majeure: Addresses unforeseeable circumstances - include when long-term relationship is contemplated

What schedules should be included in a Referral Fee Agreement?

1. Schedule 1 - Fee Structure: Detailed breakdown of referral fees, commission rates, and calculation methods

2. Schedule 2 - Products/Services: Comprehensive list of products or services covered under the referral arrangement

3. Schedule 3 - Referral Process Flow: Step-by-step process flow for making and tracking referrals

4. Schedule 4 - Reporting Template: Standard format for tracking and reporting referrals

5. Schedule 5 - Territory Details: Specific geographical areas or market segments covered

6. Appendix A - Contact Details: Key contact persons and their details for both parties

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

India

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant Industries

Financial Services

Real Estate

Information Technology

Professional Services

Healthcare

Insurance

Education

Consulting

Telecommunications

Legal Services

Marketing and Advertising

Manufacturing

Retail

E-commerce

Relevant Teams

Business Development

Sales

Partnerships

Legal

Finance

Marketing

Operations

Compliance

Account Management

Commercial Operations

Relevant Roles

Business Development Manager

Sales Director

Partnership Manager

Channel Manager

Marketing Director

Chief Revenue Officer

Account Executive

Business Partner Manager

Alliance Manager

Sales Operations Manager

Commercial Director

Affiliate Manager

Regional Sales Manager

Chief Executive Officer

Legal Counsel

Compliance Officer

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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