The Referral Commission Agreement is essential for businesses operating in Saudi Arabia who wish to formalize their referral partnerships and commission structures. This document is particularly important in the Saudi Arabian context as it must comply with both Shariah law principles and the kingdom's commercial regulations, including the Commercial Courts Law and Anti-Bribery Law. The agreement typically covers commission calculations, payment terms, referral processes, and compliance requirements. It's commonly used when businesses want to incentivize third parties to generate leads or business opportunities, while ensuring the arrangement is transparent, legally compliant, and professionally managed. The document includes specific provisions for Saudi Arabian regulatory requirements, including commercial agency regulations and financial transaction rules.
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1. Parties: Identification of the parties entering into the agreement, 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', 'Commission', 'Successful Introduction', etc.
4. Appointment and Scope: Terms of appointment and scope of referral services
5. Referral Process: Detailed process for making and tracking referrals
6. Commission Structure: Terms of commission calculation, payment conditions and timing
7. Payment Terms: Details of payment methods, currency, and payment schedule
8. Obligations of Referrer: Duties and responsibilities of the referring party
9. Obligations of Company: Duties and responsibilities of the company receiving referrals
10. Compliance: Compliance with Saudi laws, including anti-bribery and Shariah principles
11. Confidentiality: Protection of confidential information exchanged during the referral process
12. Term and Termination: Duration of agreement and conditions for termination
13. General Provisions: Standard clauses including governing law, notices, and entire agreement
1. Non-Compete: Restrictions on competing activities, used when protecting market position is crucial
2. Training and Support: Details of any training or support provided to the referrer, included when specific expertise is required
3. Marketing Guidelines: Rules for using company branding and marketing materials, included when referrer will conduct marketing activities
4. Dispute Resolution: Specific dispute resolution procedures, included when parties want to specify alternative dispute resolution methods
5. Insurance: Insurance requirements, included when referral activities carry significant risks
6. Data Protection: Detailed data protection obligations, included when significant personal data processing is involved
7. Force Majeure: Provisions for unforeseen circumstances, included when long-term relationship is anticipated
8. Shariah Compliance Declaration: Specific declaration of Shariah compliance, included when required by Saudi authorities or parties
1. Commission Rates and Calculations: Detailed breakdown of commission rates, tiers, and calculation methods
2. Referral Process Flow: Step-by-step process flow for making and tracking referrals
3. Reporting Ƶ: Standard templates for tracking and reporting referrals
4. Compliance Requirements: Detailed compliance requirements and procedures
5. Approved Marketing Materials: List of approved marketing materials and usage guidelines
6. Service Level Agreement: Performance metrics and service levels for referral processing
7. Territory Definition: Definition of geographical or market territories if applicable
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