A Sales Referral Agreement is essential for businesses operating in India that wish to expand their customer base through third-party referrals. This document is commonly used when a company wants to formalize arrangements with individuals or organizations who can refer potential customers in exchange for commission or fees. The agreement must comply with Indian contract law, particularly the Indian Contract Act, 1872, and address tax implications under Indian GST and income tax regulations. It typically includes detailed provisions on referral processes, commission structures, payment terms, and compliance requirements specific to Indian jurisdiction. The document is particularly valuable for businesses seeking to establish clear, legally-compliant referral networks while managing risks and expectations in the Indian business environment.
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1. Parties: Identifies the parties entering into the agreement - typically the referrer and the company receiving referrals
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', 'Qualified Lead', 'Commission', etc.
4. Appointment and Scope: Establishes the referrer's appointment and defines the scope of referral services
5. Referral Process: Details the specific process for making and tracking referrals
6. Commission Structure: Outlines the commission rates, calculation method, and payment terms
7. Obligations of the Referrer: Lists the referrer's duties, responsibilities, and performance standards
8. Obligations of the Company: Specifies the company's commitments regarding referral processing and commission payments
9. Confidentiality: Protects confidential information shared between parties during the referral process
10. Intellectual Property: Addresses the use of trademarks, logos, and other IP in the referral activities
11. Term and Termination: Specifies agreement duration and termination provisions
12. General Provisions: Includes standard clauses like governing law, notices, and amendment procedures
1. Non-Compete: Restricts referrer from working with competitors - include when dealing with sensitive markets or high-value referrals
2. Training and Support: Details company's commitment to train referrer - include when complex products/services are involved
3. Marketing Materials: Governs use of marketing materials - include when referrer will conduct active marketing
4. Data Protection: Detailed data handling requirements - include when significant personal data processing is involved
5. Service Level Agreement: Specific performance metrics - include when setting formal performance standards
6. Territory Restrictions: Defines geographical limitations - include when territory exclusivity is granted
7. Audit Rights: Allows audit of referral records - include for high-value or volume-based arrangements
8. Insurance Requirements: Specifies required insurance coverage - include for high-risk industries
1. Schedule 1 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
2. Schedule 2 - Referral Products/Services: List of products or services eligible for referral commission
3. Schedule 3 - Referral Process Flow: Detailed step-by-step process flow for referrals
4. Schedule 4 - Reporting Templates: Standard formats for referral tracking and commission reports
5. Appendix A - Approved Marketing Materials: Pre-approved marketing materials and usage guidelines
6. Appendix B - Contact Details: Key contact persons and escalation matrix for both parties
Relevant legal definitions
Agreement
Applicable Law
Business Day
Commencement Date
Commission
Confidential Information
Customer
Effective Date
Force Majeure Event
GST
Initial Term
Intellectual Property Rights
Lead
Notice
Parties
Personal Data
Prospect
Qualified Lead
Qualified Sale
Quarter
Referral
Referral Fee
Referral Period
Referral Process
Referral Services
Referral Territory
Renewal Term
Services
Successful Referral
Term
Territory
Trademarks
Valid Referral
Applicable Law
Business Day
Commencement Date
Commission
Confidential Information
Customer
Effective Date
Force Majeure Event
GST
Initial Term
Intellectual Property Rights
Lead
Notice
Parties
Personal Data
Prospect
Qualified Lead
Qualified Sale
Quarter
Referral
Referral Fee
Referral Period
Referral Process
Referral Services
Referral Territory
Renewal Term
Services
Successful Referral
Term
Territory
Trademarks
Valid Referral
Clauses
Interpretation
Appointment
Term
Exclusivity
Referral Process
Commission
Payment Terms
Obligations
Representations and Warranties
Confidentiality
Data Protection
Intellectual Property
Non-Compete
Non-Solicitation
Indemnification
Limitation of Liability
Force Majeure
Termination
Post-Termination
Assignment
Notices
Waiver
Severability
Entire Agreement
Amendment
Relationship of Parties
Governing Law
Dispute Resolution
Compliance with Laws
Tax Compliance
Appointment
Term
Exclusivity
Referral Process
Commission
Payment Terms
Obligations
Representations and Warranties
Confidentiality
Data Protection
Intellectual Property
Non-Compete
Non-Solicitation
Indemnification
Limitation of Liability
Force Majeure
Termination
Post-Termination
Assignment
Notices
Waiver
Severability
Entire Agreement
Amendment
Relationship of Parties
Governing Law
Dispute Resolution
Compliance with Laws
Tax Compliance
Relevant Industries
Information Technology
Financial Services
Real Estate
Professional Services
Healthcare
Education
Telecommunications
Manufacturing
Insurance
Management Consulting
Relevant Teams
Legal
Sales
Business Development
Compliance
Finance
Marketing
Partner Relations
Commercial Operations
Revenue Operations
Contract Administration
Relevant Roles
Business Development Manager
Sales Director
Channel Partner Manager
Legal Counsel
Compliance Officer
Chief Revenue Officer
Marketing Director
Partnership Manager
Sales Operations Manager
Commercial Director
Chief Financial Officer
Contract Manager
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