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Consulting Referral Fee Agreement for Saudi Arabia

Consulting Referral Fee Agreement Template for Saudi Arabia

A legally binding agreement governed by Saudi Arabian law that establishes the terms and conditions for referral fees paid by a consulting firm to a referrer for successfully introducing new clients. The document outlines the referral process, fee structure, payment terms, and compliance requirements in accordance with Saudi commercial law and Sharia principles. It includes specific provisions for anti-bribery compliance, transparency in fee arrangements, and the necessary documentation requirements under Saudi jurisdiction.

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What is a Consulting Referral Fee Agreement?

The Consulting Referral Fee Agreement is essential for businesses operating in Saudi Arabia who wish to establish formal referral networks and partnerships. This document is typically used when a consulting firm wants to incentivize third parties to refer potential clients, while ensuring compliance with Saudi Arabian commercial law, anti-bribery regulations, and Sharia principles. The agreement addresses key aspects such as fee calculations, payment structures, compliance requirements, and the responsibilities of both parties. It is particularly important in the Saudi context due to specific local regulatory requirements and the need for transparency in business relationships. The document provides a framework that protects both parties while ensuring adherence to local legal and religious principles.

What sections should be included in a Consulting Referral Fee Agreement?

1. Parties: Identification of the referrer and the consulting firm, including full legal names, registration details, and addresses

2. Background: Context of the agreement, business relationship, and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Client', 'Services', 'Referral Fee', and 'Successful Introduction'

4. Scope of Referral Arrangement: Details of the referral services, territory, and exclusivity (if any)

5. Referral Process: Step-by-step process for making referrals, including documentation requirements and approval procedures

6. Referral Fee Structure: Calculation method for referral fees, payment terms, and conditions for fee eligibility

7. Payment Terms: Timing of payments, currency, payment method, and handling of taxes

8. Obligations of the Referrer: Duties, responsibilities, and performance standards for the referrer

9. Obligations of the Consulting Firm: Duties and commitments of the consulting firm regarding referred clients

10. Compliance Requirements: Anti-bribery, anti-corruption, and Sharia compliance obligations

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Duration of the agreement and grounds for termination

13. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution procedures

What sections are optional to include in a Consulting Referral Fee Agreement?

1. Non-Competition: Restrictions on competitive activities, used when the referrer operates in the same industry

2. Training and Support: Details of any training or support provided by the consulting firm to the referrer

3. Marketing and Branding: Guidelines for using each party's brands and marketing materials, if joint marketing is contemplated

4. Insurance: Insurance requirements for either party, if specific coverage is needed

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

6. Data Protection: Specific provisions for handling personal data, if the arrangement involves data sharing

7. Shariah Compliance Declaration: Specific declaration of Shariah compliance, if required by either party or their internal policies

What schedules should be included in a Consulting Referral Fee Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of referral fee calculations, tiers, and examples

2. Schedule 2 - Referral Process Flow: Detailed workflow diagram and procedures for making and processing referrals

3. Schedule 3 - Required Documentation: Templates and forms required for making referrals and claiming fees

4. Schedule 4 - Compliance Procedures: Detailed compliance requirements and verification procedures

5. Appendix A - Approved Marketing Materials: Pre-approved marketing materials and scripts for making referrals

6. Appendix B - Territory Definition: Detailed description of geographical or client segment limitations

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions


























Clauses


































Relevant Industries

Professional Services

Management Consulting

Financial Services

Information Technology

Business Advisory

Healthcare

Education

Real Estate

Construction

Energy

Manufacturing

Telecommunications

Relevant Teams

Legal

Compliance

Business Development

Finance

Operations

Sales

Partnerships

Strategy

Commercial

Risk Management

Relevant Roles

Business Development Manager

Managing Partner

Legal Counsel

Compliance Officer

Chief Executive Officer

Commercial Director

Partnership Manager

Business Relations Manager

Chief Financial Officer

Operations Director

Strategy Director

Regional Manager

Sales Director

Channel Manager

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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