Sales Referral Agreement for Malaysia

Sales Referral Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes and regulates the relationship between a business (principal) and a party that refers potential customers or clients (referrer). The agreement outlines the terms of referral compensation, defines what constitutes a qualified referral, establishes payment terms, and includes provisions for confidentiality and data protection in accordance with Malaysian regulations. It incorporates requirements from the Malaysian Contracts Act 1950 and relevant commercial legislation, making it suitable for both B2B and B2C contexts within the Malaysian business environment.

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What is a Sales Referral Agreement?

The Sales Referral Agreement is a crucial document for businesses operating in Malaysia who wish to formalize their referral partnerships and expand their customer base through third-party referrals. This agreement type is particularly relevant in today's interconnected business environment, where companies increasingly rely on partner networks for growth. The document complies with Malaysian legal requirements, including the Contracts Act 1950, Commercial Law Act 1956, and Personal Data Protection Act 2010. It provides a comprehensive framework for managing referral relationships, detailing compensation structures, defining successful referrals, establishing payment terms, and protecting both parties' interests. The agreement is adaptable to various industries and can be customized based on the specific nature of the business relationship, referral process, and compensation model.

What sections should be included in a Sales Referral Agreement?

1. Parties: Identification of the principal company and the referrer/referral partner with their full legal names and registered addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and the purpose of entering into the referral arrangement

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

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

5. Referral Process: Detailed process for making referrals, including method of submission and qualification criteria

6. Referral Fees and Payment: Structure of referral fees, calculation method, payment terms, and conditions for fee eligibility

7. Obligations of the Principal: Principal's responsibilities in handling referrals and maintaining communication

8. Obligations of the Referrer: Referrer's duties, responsibilities, and expected standard of conduct

9. Intellectual Property: Protection and usage rights of trademarks, logos, and marketing materials

10. Confidentiality: Confidentiality obligations regarding business information and customer data

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

12. General Provisions: Standard legal clauses including governing law, notices, entire agreement, etc.

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

1. Non-Compete: Restrictions on referrer's ability to work with competitors, include when exclusivity is required

2. Marketing and Promotion: Guidelines for marketing activities and use of promotional materials, include when referrer will be involved in marketing

3. Training and Support: Details of training and support provided to referrer, include when complex products/services are involved

4. Performance Targets: Minimum referral requirements or targets, include when setting performance standards is necessary

5. Dispute Resolution: Specific dispute resolution procedures, include when detailed conflict resolution process is needed

6. Data Protection: Detailed data protection and PDPA compliance procedures, include when significant personal data processing is involved

7. Insurance: Insurance requirements for the referrer, include when high-value transactions are involved

8. Compliance with Laws: Specific regulatory compliance requirements, include when operating in regulated industries

What schedules should be included in a Sales Referral Agreement?

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

2. Schedule 2 - Products and Services: List of products/services covered under the referral arrangement

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

4. Schedule 4 - Reporting Templates: Standard forms and templates for referral reporting

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

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

7. Appendix B - Compliance Checklist: Checklist of regulatory and compliance requirements

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

Malaysia

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Technology

Financial Services

Real Estate

Professional Services

Healthcare

Education

Manufacturing

Retail

Telecommunications

Insurance

Business Consulting

Software and IT Services

Relevant Teams

Legal

Sales

Business Development

Partnerships

Compliance

Operations

Finance

Marketing

Contract Administration

Relevant Roles

Business Development Manager

Sales Director

Partnership Manager

Channel Manager

Legal Counsel

Commercial Director

Sales Operations Manager

Business Owner

Managing Director

Compliance Officer

Contract Manager

Chief Revenue Officer

Partner Success Manager

Account Executive

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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