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A Referral Agreement outlines how one party will be rewarded for directing customers or business opportunities to another party. Under Indian contract law, these agreements spell out the terms of referral fees, commissions, or other compensation that referrers earn when they successfully connect buyers with sellers.

Common in real estate, financial services, and professional consulting across India, these agreements protect both parties by clearly defining what counts as a qualified referral, payment terms, and any exclusivity requirements. They must comply with India's Payment of Commission Act and relevant industry regulations, particularly when involving regulated sectors like banking or insurance.

Use a Referral Agreement when setting up business partnerships where one party will direct clients or opportunities to another. This is especially crucial in India's service sectors like real estate, IT consulting, and financial services, where referral networks drive significant business growth.

The agreement becomes essential before starting any referral relationship with significant revenue potential or regulatory oversight. For example, when partnering with chartered accountants, insurance agents, or property dealers, having clear terms about commission structures and payment triggers helps prevent disputes and ensures compliance with Indian commission laws and industry-specific regulations.

• Referral Agreement Contract: The standard, comprehensive template covering all basic referral terms and compensation structures
• Finder Fee Agreement For Sales Leads: Focused specifically on one-time fees for successful business introductions
• Lead Referral Agreement: Tailored for ongoing lead generation relationships with detailed qualification criteria
• Real Estate Referral Form: Specialized for property transactions with RERA-compliant commission structures
• Agent To Agent Referral Form: Designed for inter-broker referrals with territory and client protection clauses

• Business Owners & Entrepreneurs: Use these agreements to formalize partnerships and protect their interests when sharing business opportunities
• Real Estate Brokers: Rely on referral agreements to share commissions when directing clients to properties outside their territory
• Financial Advisors: Create networks with other professionals to exchange qualified leads while maintaining SEBI compliance
• Professional Service Firms: Establish referral systems with complementary businesses, like CA firms partnering with legal consultants
• Legal Counsel: Draft and review these agreements to ensure enforceability under Indian contract law and sector-specific regulations

• Party Details: Gather complete business information, including registration numbers and authorized signatory details of both referrer and recipient
• Scope Definition: Clearly outline what constitutes a qualified referral and the specific services or products covered
• Commission Structure: Define exact payment terms, percentages, and conditions that trigger payment obligations
• Compliance Check: Review industry-specific regulations, especially for financial services or real estate sectors in India
• Documentation System: Set up tracking mechanisms for referrals and establish clear reporting procedures
• Agreement Generation: Use our platform to create a legally-sound document that includes all essential elements and meets local requirements

• Party Identification: Full legal names, addresses, and registration details of both referrer and recipient entities
• Referral Terms: Clear definition of qualified referrals and specific services covered under Indian contract law
• Compensation Structure: Detailed commission rates, payment triggers, and settlement timeframes compliant with Payment of Commission Act
• Confidentiality Provisions: Data protection measures aligned with Indian IT Act requirements
• Term and Termination: Agreement duration, renewal terms, and conditions for early termination
• Dispute Resolution: Jurisdiction clause specifying Indian courts and applicable state laws
• Non-Compete Clauses: Reasonable restrictions as per Indian Contract Act limitations

A Referral Agreement differs significantly from an Affiliate Agreement, though both involve business partnerships and revenue sharing. Let's explore the key distinctions that matter under Indian law:

• Payment Structure: Referral Agreements typically involve one-time commissions for specific introductions, while Affiliate Agreements usually feature ongoing revenue sharing for continuous sales or traffic
• Relationship Duration: Referral arrangements often end after the successful connection, whereas affiliate partnerships tend to be long-term marketing relationships
• Legal Obligations: Referral Agreements require direct client introductions and personal connections, while Affiliate Agreements focus on marketing activities and promotional content
• Regulatory Oversight: In India, referral arrangements in regulated sectors like banking or insurance face stricter RBI and IRDA scrutiny than general affiliate marketing relationships
• Documentation Requirements: Referral Agreements need detailed tracking of specific introductions, while Affiliate Agreements focus on marketing metrics and conversion tracking