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Car Referral Fee Agreement Template for South Africa

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Key Requirements PROMPT example:

Car Referral Fee Agreement

"I need a Car Referral Fee Agreement for my luxury car dealership in Cape Town, where we'll pay independent sales agents a 2% commission for successful referrals of new vehicle sales, with the agreement starting January 2025."

Document background
The Car Referral Fee Agreement is essential for automotive businesses in South Africa seeking to expand their customer base through structured referral partnerships. This document is typically used when establishing formal arrangements between vehicle sellers (such as dealerships or manufacturers) and parties who can refer potential customers, setting out clear terms for referral fee payments and process requirements. The agreement ensures compliance with South African consumer protection laws, financial regulations, and data protection requirements while protecting both parties' interests. It addresses key aspects such as referral qualification criteria, payment structures, and performance expectations, making it suitable for both traditional dealership models and modern automotive retail operations.
Suggested Sections

1. Parties: Identification and details of the referrer and the car dealership/company

2. Background: Context of the agreement and brief explanation of the referral arrangement

3. Definitions: Key terms used in the agreement including 'Successful Referral', 'Referral Fee', 'Qualified Lead', etc.

4. Appointment and Scope: Terms of appointment and scope of referral services

5. Referral Process: Detailed process for making and tracking referrals

6. Referral Fee Structure: Calculation method and amounts of referral fees

7. Payment Terms: Timeline and method of payment, including invoicing requirements

8. Obligations of the Referrer: Responsibilities and commitments of the referring party

9. Obligations of the Company: Responsibilities and commitments of the receiving company

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Compliance with POPIA and handling of personal information

12. Term and Termination: Duration of agreement and termination provisions

13. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Non-Compete: Restrictions on working with competitors, used when protecting market position

2. Marketing Guidelines: Rules for marketing and promotion, needed when referrer will actively promote services

3. Training Requirements: Required training for referrers, included when specific product knowledge is needed

4. Performance Targets: Minimum referral requirements, used in professional or high-volume arrangements

5. Dispute Resolution: Specific procedures for resolving disputes, useful for high-value arrangements

6. Insurance Requirements: Required insurance coverage, relevant for professional referrers

7. Exclusivity Provisions: Terms for exclusive referral rights, used in strategic partnerships

Suggested Schedules

1. Schedule 1: Fee Structure: Detailed breakdown of referral fees for different vehicle categories or scenarios

2. Schedule 2: Referral Process Flow: Step-by-step process flow diagram for referrals

3. Schedule 3: Reporting Template: Standard format for tracking and reporting referrals

4. Schedule 4: Approved Marketing Materials: Pre-approved marketing content and guidelines

5. Appendix A: Contact Details: Key contact information for both parties

6. Appendix B: Required Documentation: List of documents required for processing referrals

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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Relevant Industries

Automotive

Retail

Financial Services

Transportation

Fleet Management

Vehicle Leasing

Insurance

Professional Services

Sales and Marketing

Relevant Teams

Sales

Business Development

Legal

Compliance

Finance

Operations

Marketing

Customer Relations

Partnerships

Commercial

Relevant Roles

Sales Director

Business Development Manager

Dealership Manager

Fleet Sales Manager

Marketing Manager

Commercial Director

Finance Manager

Compliance Officer

Legal Counsel

Operations Manager

Partnership Manager

Sales Agent

Customer Relations Manager

Vehicle Finance Specialist

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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