The Sales Referral Agreement is essential for businesses operating in the Philippines who wish to expand their market reach through formal referral partnerships. This document is particularly important in the Philippine business context where relationship-based business development is common and requires careful legal structuring. The agreement addresses key aspects such as referral mechanisms, commission structures, and compliance with local regulations including the Civil Code of the Philippines, tax laws, and data privacy requirements. It's typically used when companies want to incentivize third parties to refer customers while maintaining control over the sales process and ensuring legal compliance. The document includes specific provisions for protecting both parties' interests, managing referral tracking, and establishing clear payment terms, all within the framework of Philippine commercial law.
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1. Parties: Identifies the principal company and the referrer/referral partner, including their complete legal names and addresses
2. Background: Explains the context of the agreement, including the principal's business and the referrer's role
3. Definitions: Defines key terms used throughout the agreement, including 'Qualified Referral', 'Successful Sale', and 'Referral Fee'
4. Appointment and Scope: Establishes the referrer's role, rights, and limitations in representing the principal's products/services
5. Referral Process: Details the procedure for submitting referrals, tracking leads, and qualifying successful referrals
6. Referral Fees and Payment Terms: Specifies the compensation structure, calculation method, and payment timing for successful referrals
7. Obligations of the Referrer: Lists the referrer's responsibilities, including ethical conduct and compliance with laws
8. Obligations of the Principal: Outlines the principal's commitments in handling referrals and supporting the referrer
9. Confidentiality: Protects proprietary information shared between parties during the referral process
10. Term and Termination: Specifies the agreement duration and conditions for termination
11. General Provisions: Contains standard legal clauses including governing law, notices, and amendment procedures
1. Non-Compete: Restricts the referrer from working with competitors, used when sharing sensitive market information
2. Training and Support: Details any training or resources provided to the referrer, included when the principal offers comprehensive support
3. Marketing Guidelines: Specifies rules for using the principal's branding and marketing materials, needed when referrer conducts marketing activities
4. Performance Targets: Sets minimum referral requirements or quotas, used in more structured referral programs
5. Dispute Resolution: Establishes specific procedures for resolving conflicts, recommended for high-value referral arrangements
6. Data Protection: Additional provisions for handling personal data, required when referrals involve substantial data sharing
7. Insurance Requirements: Specifies insurance coverage requirements for the referrer, needed in high-risk industries
1. Schedule A - Compensation Structure: Detailed breakdown of referral fees, commission tiers, and bonus structures
2. Schedule B - Products and Services: List of products/services covered under the referral agreement
3. Schedule C - Referral Submission Form: Standard template for submitting referral information
4. Schedule D - Territory Definition: Geographic or market segment limitations for referral activities
5. Appendix 1 - Reporting Templates: Standard formats for tracking and reporting referral activities
6. Appendix 2 - Compliance Checklist: List of regulatory requirements and compliance procedures
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Professional Services
Financial Services
Real Estate
Insurance
Healthcare
Manufacturing
Telecommunications
Education and Training
Consulting Services
Retail
Construction
Relevant Teams
Business Development
Sales
Legal
Compliance
Finance
Marketing
Partner Relations
Operations
Commercial
Administration
Relevant Roles
Business Development Manager
Sales Director
Channel Partner Manager
Chief Revenue Officer
Marketing Manager
Partnership Manager
Legal Counsel
Compliance Officer
Sales Operations Manager
Account Executive
Chief Executive Officer
Commercial Director
Business Owner
Referral Program Coordinator
Sales Administrator
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