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Referral Fee Agreement for Saudi Arabia

Referral Fee Agreement Template for Saudi Arabia

A Referral Fee Agreement governed by Saudi Arabian law establishes the terms and conditions under which one party can refer customers or business opportunities to another party in exchange for specified compensation. The agreement ensures compliance with both Saudi commercial regulations and Sharia law principles, particularly regarding the structuring of payments and the nature of the business relationship. It details the referral process, fee calculations, payment terms, and obligations of both parties while incorporating necessary provisions for anti-bribery compliance and ethical business practices under Saudi jurisdiction.

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What is a Referral Fee Agreement?

The Referral Fee Agreement is essential for businesses operating in Saudi Arabia who wish to formalize arrangements where one party directs customers or opportunities to another for compensation. This document is particularly important given Saudi Arabia's unique legal framework, which combines modern commercial law with Sharia principles. The agreement must carefully structure payment terms to comply with Islamic finance principles while meeting commercial objectives. It typically includes detailed provisions for the referral process, fee calculations, payment schedules, and compliance requirements. This document is commonly used in various sectors where business referrals are frequent, such as financial services, real estate, and professional services, and must align with Saudi regulations including anti-bribery laws, commercial agency regulations, and monetary authority guidelines.

What sections should be included in a Referral Fee Agreement?

1. Parties: Identification of the referrer and the company/recipient of referrals, including full legal names and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Successful Referral', 'Referral Fee', and 'Referred Customer'

4. Scope of Services: Detailed description of referral services and the referrer's responsibilities

5. Referral Process: Step-by-step process for making and tracking referrals

6. Fee Structure and Payment Terms: Calculation method for referral fees, payment timing, and payment methods compliant with Sharia principles

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Non-Solicitation: Restrictions on soliciting employees or customers

10. Representations and Warranties: Parties' confirmations regarding their authority and compliance with laws

11. Compliance with Laws: Obligations to comply with Saudi laws, including anti-bribery and Sharia principles

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

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

1. Exclusivity: Used when the referrer is granted exclusive rights in specific territories or for specific customer types

2. Training and Support: Include when the company will provide training or materials to the referrer

3. Marketing Guidelines: Include when the referrer will be using the company's branding or marketing materials

4. Performance Targets: Used when minimum referral targets are required to maintain the relationship

5. Dispute Resolution: Alternative dispute resolution procedures, if parties prefer specific mechanisms beyond court jurisdiction

6. Insurance Requirements: Include when referrer must maintain specific insurance coverage

7. Data Protection: Include when referral process involves handling personal data

8. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

What schedules should be included in a Referral Fee Agreement?

1. Schedule 1: Fee Structure: Detailed breakdown of referral fee calculations, tiers, and bonus structures

2. Schedule 2: Referral Process Flow: Detailed step-by-step process including forms, timelines, and approval procedures

3. Schedule 3: Approved Marketing Materials: List and samples of approved marketing materials and usage guidelines

4. Schedule 4: Reporting Templates: Standard forms for referral submission and tracking

5. Schedule 5: Territory Definition: Detailed description of geographical or market segment boundaries if applicable

6. Appendix A: Compliance Checklist: Checklist ensuring compliance with Saudi regulations and Sharia principles

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Financial Services

Real Estate

Professional Services

Information Technology

Healthcare

Education

Management Consulting

Insurance

Telecommunications

Business Services

Manufacturing

Retail

Relevant Teams

Legal

Compliance

Business Development

Sales

Commercial

Operations

Finance

Marketing

Partnership Management

Risk Management

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Legal Counsel

Compliance Officer

Chief Commercial Officer

Partnership Manager

Marketing Director

Account Executive

Business Manager

Regional Sales Manager

Chief Executive Officer

Commercial Director

Relationship Manager

Operations 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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