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The Referral Fee Agreement is essential for businesses and professionals operating in South Africa who wish to formalize arrangements where one party refers clients or customers to another for a fee. This document is particularly crucial given South Africa's robust regulatory environment, including specific requirements under FAIS for financial services referrals, POPIA for data protection, and the Consumer Protection Act. The agreement typically details the referral process, fee structure, payment terms, and compliance obligations. It's commonly used in various sectors including financial services, real estate, and professional services, where referral networks are valuable business development tools. The document should be customized based on the specific industry requirements and whether the referral arrangement involves regulated activities.

1. Parties: Identifies and provides full details of the referring party and the recipient party

2. Background: Explains the context of the agreement and the parties' intention to enter into a referral arrangement

3. Definitions: Defines key terms used throughout the agreement, including 'Referral', 'Referral Fee', 'Successful Referral', etc.

4. Appointment and Scope: Establishes the non-exclusive nature of the referral relationship and scope of referral services

5. Referral Process: Details the mechanism and procedure for making and tracking referrals

6. Referral Fee Structure: Specifies the fee calculation method, payment terms, and conditions for fee eligibility

7. Obligations of the Referring Party: Lists the responsibilities and commitments of the party making the referrals

8. Obligations of the Recipient Party: Details the responsibilities of the party receiving referrals, including service standards

9. Compliance Requirements: Addresses regulatory compliance, including FICA, POPIA, and consumer protection requirements

10. Representations and Warranties: Contains standard warranties about capacity to contract and compliance with laws

11. Confidentiality: Governs the treatment of confidential information shared between parties

12. Duration and Termination: Specifies the term of the agreement and termination provisions

13. General Provisions: Contains standard legal clauses including notices, governing law, and dispute resolution