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Simple Referral Fee Agreement Template for Canada

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Key Requirements PROMPT example:

Simple Referral Fee Agreement

"I need a Simple Referral Fee Agreement for my software consulting company to set up a partner referral program starting March 2025, with a 15% commission structure for qualified leads that convert to sales."

Document background
The Simple Referral Fee Agreement is designed for use in Canadian business contexts where one party wishes to formalize an arrangement to receive compensation for referring potential clients or customers to another business. This document is particularly valuable for businesses looking to expand their customer base through referral networks while maintaining legal compliance. The agreement addresses key aspects required under Canadian law, including privacy considerations under PIPEDA, tax implications under the Income Tax Act, and general commercial law requirements. The document is structured to be straightforward yet comprehensive, making it suitable for both small businesses and larger organizations. A Simple Referral Fee Agreement is especially useful when establishing new business relationships or formalizing existing referral arrangements, providing clear terms for referral processes, fee calculations, payment schedules, and mutual obligations.
Suggested Sections

1. Parties: Identification of the referrer and the company/individual receiving referrals

2. Background: Brief context of the referral arrangement and business relationship

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

4. Referral Arrangement: Core terms of how the referral process works

5. Referral Fees and Payment Terms: Fee structure, calculation method, and payment timing

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

7. Obligations of the Company: Responsibilities of the party receiving referrals

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

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

10. General Terms: Standard legal provisions including governing law, amendments, and notices

Optional Sections

1. Non-Solicitation: Prevents parties from directly soliciting each other's clients or employees

2. Exclusivity: Used when referrer agrees to exclusively refer to one company

3. Privacy and Data Protection: Additional provisions for handling personal data in referrals

4. Marketing and Promotion: Guidelines for how referrer can market or promote the company

5. Dispute Resolution: Specific procedures for handling disagreements

6. Insurance Requirements: Specific insurance obligations for either party

7. Compliance with Laws: Specific regulatory compliance requirements for regulated industries

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of referral fees, tiers, and calculation methods

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

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

Authors

Alex Denne

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

Relevant legal definitions
























Clauses




























Relevant Industries

Professional Services

Real Estate

Financial Services

Technology

Consulting

Healthcare

Education

Insurance

Legal Services

Marketing and Advertising

Software and IT

Business Services

Relevant Teams

Business Development

Sales

Legal

Operations

Marketing

Partner Relations

Compliance

Finance

Customer Success

Account Management

Relevant Roles

Business Development Manager

Sales Director

Managing Partner

Chief Executive Officer

Business Owner

Marketing Manager

Channel Partner Manager

Referral Program Coordinator

Legal Counsel

Operations Manager

Account Executive

Partnership Manager

Independent Consultant

Sales Representative

Business Consultant

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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