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Consulting Referral Fee Agreement Template for Pakistan

This document establishes a formal referral fee arrangement between consulting service providers and referral partners in Pakistan, governed by Pakistani law including the Contract Act 1872 and Income Tax Ordinance 2001. It outlines the terms and conditions for referral relationships, including fee structures, payment terms, qualification criteria for successful referrals, and compliance requirements. The agreement ensures transparency in business relationships while protecting both parties' interests and maintaining compliance with local regulations regarding business transactions and revenue sharing.

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What is a Consulting Referral Fee Agreement?

The Consulting Referral Fee Agreement is essential for businesses operating in Pakistan's professional services sector who wish to formalize their referral partnerships. This document is typically used when consulting firms or individual consultants want to incentivize third parties to refer potential clients to their services. The agreement specifically addresses Pakistani legal requirements, including compliance with the Contract Act 1872, Income Tax Ordinance 2001, and relevant anti-corruption legislation. It outlines the entire referral relationship, from initial introduction to payment of fees, while ensuring transparency and legal compliance. The document is particularly important in the Pakistani business context where relationship-based business development is common but needs to be properly documented for legal and tax purposes.

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

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

2. Background: Context of the agreement, explaining the consulting services offered and the referrer's role

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

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

5. Referral Process: Details of how referrals should be made, documented, and tracked

6. Qualification of Referrals: Criteria for what constitutes a valid referral and when a referral is deemed successful

7. Referral Fees and Payment Terms: Structure of referral fees, calculation method, payment timing, and payment procedures

8. Tax and Deductions: Handling of tax obligations and any statutory deductions

9. Obligations of the Parties: Responsibilities and commitments of both the referrer and the consulting firm

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Confidentiality: Protection of confidential information shared during the referral process

12. Representations and Warranties: Standard warranties about capacity to contract and compliance with laws

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

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

1. Non-Compete: Restrictions on referrer's ability to refer to competitors, used when protecting market position is crucial

2. Intellectual Property: Protection of trademarks and marketing materials, needed when referrer will use consultant's branded materials

3. Marketing and Promotion: Guidelines for how the referrer can market the consultant's services, included when referrer will actively promote services

4. Dispute Resolution: Specific procedures for handling disputes, important for high-value referral arrangements

5. Force Majeure: Provisions for unforeseeable circumstances, relevant in long-term referral arrangements

6. Anti-Corruption Compliance: Detailed anti-corruption provisions, necessary when dealing with government or regulated sectors

7. Data Protection: Specific data handling requirements, needed when referral involves sharing personal data

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

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

2. Schedule 2 - Referral Process Flow: Step-by-step process for making and tracking referrals

3. Schedule 3 - Approved Marketing Materials: List of approved materials and guidelines for their use

4. Appendix A - Referral Report Template: Standard format for documenting and submitting referrals

5. Appendix B - Payment Request Form: Template for claiming referral fees

6. Appendix C - Compliance Checklist: Checklist ensuring referrals meet all legal and regulatory requirements

Authors

Alex Denne

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

Jurisdiction

Pakistan

Publisher

Ƶ

Cost

Free to use

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