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Mutual Referral Agreement Sample

13th December 2020 • By

The mutual referral agreement requires the following information: Qualified recommendations: The mutual referral agreement uses qualified recommendations – written recommendations for services provided by one party in order to bring clients to the other party. Set timeouts that limit qualified references. Compensation. The Company pays the Affiliate ______ for each successful referral, where a successful referral is defined as a recommendation that becomes a client/client of the Company. The Company will pay the Affiliate _____ for any unsuccessful referral if an unsuccessful referral is defined as a valid reference candidate who does not become a client/client of the Company through no fault of the Affiliate or the Company; and a valid reference candidate is a potential client who meets the specifications set out in Section 1 above. The Company will pay the Affiliate within thirty (30) days of a completed recommendation, when a completed recommendation is the commitment of the new client/client or a final measure that the referral does not become a new client/client. The mutual benchmark agreement creates incentives for parties that have joined forces to increase the number of customers each receives. This agreement is best suited for companies whose customer base logically overlaps. (a) the relationship between the reference party and the receiving party (the party receiving the referrals).

Entire Agreement. The parties acknowledge and agree that this Agreement constitutes the entire agreement between the parties. In the event that the parties wish to change, add or otherwise modify any terms, they must do so in writing in order to be signed by both parties. Confidentiality. As part of this Agreement, it may be necessary for the Company to disclose proprietary information, including trade secrets, industry knowledge and other confidential information, to the Affiliate in order for the Affiliate to search for potential references. The Affiliate will never share this proprietary information. The Affiliate will not use any of this proprietary information at any time for his or her personal benefit. This section shall remain in full force and effect even after the termination of the Agreement by its natural termination or early termination by either party. This model referral agreement is a formal contract between two parties in which one of the parties offers potential customers to the other in exchange for compensation. In addition, a recommendation agreement can be concluded in which both parties mediate to customers and market services for each other.

This can legally ensure a mutually beneficial relationship between the two parties. Let`s say you own a flower shop and you know someone who owns a bakery. You and the other business owner decide to enter into an agreement in which you refer customers to each other`s store and receive compensation if these recommendations become sales. Or maybe you`re a photographer and want to make a similar deal with a website designer. In any case, you can achieve your goal through a mutual reference agreement. How do I use this document? This document comes into play when two parties agree to refer clients to each other for a fee/commission. The document can be customized to include the percentage of commission to be paid for the reference. Dispute Resolution – Choose the method of dispute resolution in the event of a conflict between the parties.

You must indicate how potential disputes arising out of this Agreement will be handled. The two options of this Agreement are to use the judicial system or arbitration. This agreement should not be invoked if the commission payments relate to the supply of physical goods; nor should it be used in relation to relations governed by the law of the Agency. Mutual referral contracts are legally binding contracts between companies if they have been drawn up by legal experts in business law. We strongly recommend that you get one of our available templates, a legally certified document written by a real lawyer that contains current case law and quotes. The agreement assumes that each party operates a reference tracking system. The basic rule is that the commission is only payable to customers assigned to the relevant party in the referral tracking system. If a client is registered with another person in the referral tracking system at the time of referral, no commission will be due. The scope of sponsorship rights may be limited. For example, the referring party`s rights to market the other party`s services may be limited to a specific territory. Alternatively or in addition, the types of reports may be limited by reference to the types of services to be provided by the party receiving the reports. (b) the payment of the reference commission/commission, i.e.

the circumstances in which the commission is due and not due to the referring party; Referral agreement. After the effective date of this Agreement, the Affiliate may from time to time refer potential customers to the Company. The Company will pay the Affiliate a fee for such references. By using a mutual reference agreement, you and the other party involved understand what is expected of the other and how each company can benefit from the agreement. You don`t have to worry about loopholes or ambiguous terms, and both sides will seek recourse for violations of the agreement. A mutual reference agreement is a contract between two parties in which each party transfers potential customers to the other for a mutually agreed sponsorship fee. The easiest way to draft a reference contract for a company is to use an already existing model. This will help make the process faster and easier, while allowing you to be sure that you have a document that you can trust. Designing a reference agreement can be an easy and quick task, saving you valuable time and energy and getting a template for yourself. Compensation: Project referral fees represent a percentage of the total revenue generated in a period following the hiring of the referring client. Use this field to set the percentage of revenue that makes up the project`s reference fee. Representations and Warranties.

Both parties declare that they have the full right to enter into this Agreement. The performance and obligations of either party does not violate or violate the rights of any third party or violate any other agreement between the parties, individually and any other person, organization or company, or any government law or regulation. In general, a mutual transfer agreement does not need to be notarized – both parties only have to sign the document to make it legally enforceable. A witness may be useful if the other party tries to challenge the document, but a notary is not required. Effective Date: Select the date on which the agreement will be signed. Party Details: Provide the names and contact information of the two parties entering into the agreement. Termination. This Agreement may be terminated at any time by either party with ___ days` written notice to the other party. In the event of termination, the Company will pay the Affiliate all compensation due and due for references made prior to the date of termination but not yet paid. Applicable law and jurisdiction. The Parties agree that this Agreement shall be governed by the State and/or country in which both Parties operate. In the event that the parties do business in different states and/or countries, this Agreement is subject to the ___ Instead, go directly to the download.

Contracts and Related Forms: Model Consulting Contracts and Non-Compete Obligations Our accuracy form builder will help you create your personalized mutual reference agreement in minutes. .