A referral order contract is a legal document that outlines the terms of a referral agreement between a referrer and a referral recipient. It is a way to formalize the referral process and ensure that both parties understand their roles and responsibilities.
In this article, we will provide an example of a referral order contract and explain its key components.
Referral Order Contract Example
This referral order contract (“Agreement”) is made and entered into by and between Referrer [Name], with a business address of [Address] (“Referrer”), and Referral Recipient [Name], with a business address of [Address] (“Recipient”). The parties agree as follows:
1. Referral Services: Referrer shall provide Referral Services to Recipient as mutually agreed upon by the parties. Referral Services may include, but are not limited to, referring potential clients or customers to Recipient.
2. Payment: Recipient agrees to pay Referrer a referral fee of [Amount] for each referred client or customer who purchases Recipient’s products or services as a result of the referral. Referral fees shall be paid within [Timeframe] of the referred client or customer’s purchase.
3. Term: This Agreement shall commence on the date of signature and shall continue for [Duration]. Either party may terminate this Agreement upon [Notice] days’ written notice to the other party.
4. Confidentiality: Referrer shall keep confidential all information related to Recipient’s business, including but not limited to, customer information and trade secrets.
5. Indemnification: Recipient shall indemnify and hold harmless Referrer from any and all claims, damages, and expenses arising out of or in connection with Recipient’s products or services.
6. Relationship of Parties: Referrer and Recipient are independent contractors and nothing in this Agreement shall be construed to create a joint venture or agency.
7. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State] without giving effect to any choice or conflict of law provision or rule.
8. Entire Agreement: This Agreement constitutes the entire understanding and agreement between the parties and supersedes all prior negotiations, understandings, and agreements.
9. Counterparts: This Agreement may be executed in counterparts, each of which shall be considered an original, and all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
Key Components of a Referral Order Contract
1. Referral Services: This section defines the referral services to be provided by the referrer and sets expectations for the referral process.
2. Payment: This section specifies the referral fee and outlines when and how it will be paid.
3. Term: This section sets the duration of the referral agreement and outlines the conditions for termination.
4. Confidentiality: This section outlines the confidentiality obligations of the referrer and sets expectations for protecting the recipient’s business information.
5. Indemnification: This section outlines the recipient’s obligation to protect the referrer from any claims or damages related to the recipient’s products or services.
6. Relationship of Parties: This section clarifies that both parties are independent contractors and not employees or partners.
7. Governing Law: This section specifies the law that will be used to interpret and enforce the agreement.
8. Entire Agreement: This section clarifies that the contract represents the entire agreement between the parties and supersedes any prior agreements or understandings.
9. Counterparts: This section allows for the contract to be executed in multiple counterparts, with each copy considered an original.
In conclusion, a referral order contract is an important document that protects the interests of both parties involved in a referral agreement. The example provided above can serve as a guideline for creating a referral order contract that is specific to your business needs. As a professional, I would recommend that you make sure that the language used in the contract is clear and concise, and that the contract is easy to read and understand.