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Agent Referral Agreement Template for England and Wales

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Key Requirements PROMPT example:

Agent Referral Agreement

"I need an Agent Referral Agreement for my fintech company based in London, where we'll pay 10% commission to agents who refer SME clients to our payment processing platform, starting from January 2025."

Document background
The Agent Referral Agreement is essential for businesses seeking to expand their client base through third-party referrals. This document, governed by English and Welsh law, sets out the framework for a successful referral relationship, including detailed commission structures, referral processes, and compliance requirements. It's particularly important in regulated industries where clear documentation of business relationships is required. The agreement ensures both parties understand their rights and obligations while providing legal protection under relevant legislation including the Commercial Agents Regulations 1993.
Suggested Sections

1. Parties: Identification and details of the principal and agent

2. Background: Context and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment and scope of authority

5. Referral Process: Procedures for making and tracking referrals

6. Commission Structure: Payment terms and calculation of referral fees

7. Obligations of the Parties: Responsibilities of both principal and agent

8. Term and Termination: Duration and termination provisions

9. Confidentiality: Protection of confidential information

10. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement

Optional Sections

1. Non-Compete: Restrictions on competitive activities during and after the agreement term

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

3. Data Protection: Compliance with GDPR and Data Protection Act requirements

4. Training and Support: Details of training, materials, and support provided to the agent

Suggested Schedules

1. Commission Schedule: Detailed breakdown of commission rates, calculations, and payment terms

2. Referral Process Flowchart: Visual representation of the referral process and procedures

3. Reporting Templates: Standard forms for tracking and reporting referrals

4. Territory Schedule: Definition of geographical or market territories if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















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Industries

Commercial Agents (Council Directive) Regulations 1993: Core legislation governing commercial agency relationships in the UK, implementing EU Directive 86/653/EEC. Covers rights, obligations and termination of commercial agents.

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, relevant for referral relationships and commission structures.

Competition Act 1998: Ensures the agreement doesn't contain anti-competitive provisions or restrict trade unfairly.

Bribery Act 2010: Addresses anti-corruption measures and ensures proper conduct in business relationships, including referral fees and commissions.

Data Protection Act 2018 and UK GDPR: Governs the handling and processing of personal data that may be shared between parties in the referral relationship.

Common Law Agency Principles: Fundamental legal principles governing agency relationships, including authority, duties, and obligations of agents.

Misrepresentation Act 1967: Protects against false or misleading statements made during contract formation.

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts.

Consumer Rights Act 2015: Relevant if the agent will be dealing with consumers, ensuring consumer protection requirements are met.

Employment Rights Act 1996: Important for establishing clear distinction between agent status and employment relationship.

Money Laundering Regulations 2017: Ensures compliance with anti-money laundering requirements in business relationships.

Trade Marks Act 1994: Governs the use of trademarks and brand elements in the agency relationship.

Copyright, Designs and Patents Act 1988: Protects intellectual property rights that may be shared or used in the course of the agency relationship.

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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