Referral Partner Agreement: Definition, Terms, Example
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What is a Referral Partner Agreement?
A referral partner agreement is a legal agreement entered by two parties for the purposes of referring new business leads and clients in exchange for commissions. The referral partner will agree to refer potential business leads to a company and if the lead produces a sale, the referral partner will then be paid a commission. Referral partner agreements can be complicated because the contract must differentiate between a qualified and unqualified lead. The contract must also define a payout period for completed referrals, include what the commission pay will be, and include terms that are beneficial to both parties.
Common Sections in Referral Partner Agreements
Below is a list of common sections included in Referral Partner Agreements. These sections are linked to the below sample agreement for you to explore.
Referral Partner Agreement Sample
a. | All deal registrations need to adhere to GE Digital Deal Registration Guidelines, which are available on the partner portal referenced above. Key points include: |
• | Clear budget, authority, need and timing from end-customer. |
• | Referral Partner is expected to regularly update GED on the status of an approved opportunity, once every thirty (30) days at a minimum. If no update is provided for a period of sixty (60) days, GED may close the opportunity if Referral Partner does not provide an update to GED within ten (10) business days following GED’s written request. |
• | Referral Partner may register opportunities for end-customers in any regions where they are contracted to sell. |
• | Except as otherwise set forth in this Agreement, an approved deal registration will be valid for one-hundred-eighty (180) days. During the period in which an |
• | Any disagreement on the outcome of deal registration will be decided in accordance with the dispute resolution procedures set forth in Section 13 of this Agreement. |
b. | After submission of a deal registration, Referral Partner will receive a confirmation email that confirms GED has received and is reviewing the opportunity. GED will conduct a review to determine whether: |
• | The opportunity has been completed with all required information. |
• | Another channel partner has already engaged with the opportunity. |
• | A direct seller of GED or its Affiliates is already engaged with the opportunity. |
• | The opportunity aligns with GED product and sales strategy. |
c. | The terms of Exhibit 1 (Referral Commercial Terms) will additionally apply, and those terms will govern the Registered Opportunity for referral in the event of any conflict with the body of this Agreement. |
3. | Termination of Registered Opportunity. |
a. | Each Registered Opportunity will remain a Registered Opportunity until terminated upon the earliest of the following events: |
i. | GE Digital gives written notice to Referral Partner that it withdraws from working on the Registered Opportunity; |
ii. | GE Digital gives written notice to Referral Partner that the Registered Opportunity has been won and a contract signed with the end-customer, which written notice shall be provided reasonably promptly following the closing of the Registered Opportunity with the end-customer; |
iii. | both Parties agree in writing to remove the Registered Opportunity; |
iv. | the opportunity has remained an open Registered Opportunity for more than one-hundred-eighty (180) calendar days from the date registration became effective, unless both Parties mutually agree in writing to maintain its status as a Registered Opportunity; or |
v. | GE Digital does not contact the applicable end-customer within thirty (30) days following approval of a Registered Opportunity, after which BHGE may provide GE Digital with written notice of its intent to terminate the applicable Registered Opportunity due to such failure to contact the end-customer, which Registered Opportunity shall terminate if GE Digital does not subsequently contact such end-customer within ten (10) business days following receipt of such written notice from BHGE. |
b. | From and after the termination of a Registered Opportunity in accordance with this Section 3 (other than pursuant to Section 3(a)(ii)), BHGE may pursue the Registered Opportunity directly or refer it to other third parties and, unless otherwise agreed by the Parties (including with respect to any applicable referral fees), GED shall not pursue the Registered Opportunity or related opportunity with the same end-customer for a period of one-hundred and eighty (180) days. |
a. | GE Digital shall, at GE Digital’s expense, indemnify, defend or, at GE Digital’s option, settle any claim brought against Referral Partner relating to or arising out of GE Digital’s sales efforts in connection with any Registered Opportunity or the terms and conditions of any definitive agreement entered into with an end-customer pursuant to a Registered Opportunity (each such claim, a “Referral Partner Claim”), and pay any final judgments awarded by a court of competent jurisdiction or settlements entered into by GE Digital on Referral Partner’s behalf. Referral Partner must notify GE Digital promptly of the applicable Referral Partner Claim in writing, tender to GE Digital sole control and authority over the defense or settlement of such Referral Partner Claim, and reasonably cooperate with GE Digital, at GE Digital’s expense, and provide GE Digital with available information in the investigation and defense of such Referral Partner Claim. Any effort by Referral Partner to settle a Referral Partner Claim without GE Digital’s involvement and written approval shall void any indemnification obligation hereunder. |
b. | Referral Partner shall, at Referral Partner’s expense, indemnify, defend or, at Referral Partner’s option, settle any claim brought against GE Digital relating to or arising out of Referral Partner’s sales efforts in connection with any Registered Opportunity or any agreement entered into between Referral Partner and a third party in connection with such sales efforts (each such claim, a “GE Digital Claim”), and pay any final judgments awarded by a court of competent jurisdiction or settlements entered into by Referral Partner on GE Digital's behalf. GE Digital must notify Referral Partner promptly of the applicable GE Digital Claim in writing, tender to Referral Partner sole control and authority over the defense or settlement of such GE Digital Claim, and reasonably cooperate with Referral Partner, at Referral Partner’s expense, and provide Referral Partner with available information in the investigation and defense of such GE Digital Claim. Any effort by GE Digital to settle a GE Digital Claim without Referral Partner’s involvement and written approval shall void any indemnification obligation hereunder. |
Reference:
Security Exchange Commission - Edgar Database, EX-10.7 8 a20190630exhibit107.htm EXHIBIT 10.7, Viewed November 11, 2021, View Source on SEC.
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Meet some of our Referral Partner Agreement Lawyers
Garrett M.
Attorney Garrett Mayleben's practice is focused on representing small businesses and the working people that make them profitable. He represents companies in structuring and negotiating merger, acquisition, and real estate transactions; guides emerging companies through the startup phase; and consults with business owners on corporate governance matters. Garrett also practices in employment law, copyright and trademark law, and civil litigation. Though industry agnostic, Garrett has particular experience representing medical, dental, veterinary, and chiropractic practices in various business transactions, transitions, and the structuring of related management service organizations (MSOs).
"Though I found a few small mistakes that made me think he rushed a bit, he revised the agreement to be more in my favor. His expertise was well worth it."
Jane C.
Skilled in the details of complex corporate transactions, I have 15 years experience working with entrepreneurs and businesses to plan and grow for the future. Clients trust me because of the practical guided advice I provide. No deal is too small or complex for me to handle.
"Jane was great! Concise, efficient and on point with all the issues in our domestic partnership agreement. She understands the law and complexities of contracts and relationships. She was a tremendous help. I would definitely consult with her again!"
Alexander N.
Having overseen over $1.2 billion in transaction value, we are able to provide top-tier service at affordable rates, with much more personalized attention and fast turnarounds. After working for a AM Law Top 100 firm, I started my own firm and have been lucky enough to represent numerous conglomerates (FOX, Endeavor, etc.), promising startups, small businesses and private individuals. Our areas of expertise - Business Formations and Operating Agreements; Capital Raises and Debt Financing; Commercial Transactions; M&A; Real Estate; Intellectual Property; Employment and Hiring; Outside General Counsel; Corporate Agreements and Governance; Litigation and Dispute Resolution. We have been featured in The Wall Street Journal, Marketwatch, Yahoo Finance, Variety, Business Insider, Los Angeles Magazine, the LA Times, and others. We are driven by an unwavering commitment to our clients, going above and beyond to deliver results.
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Daniel D.
Attorney with 14 years experience in transactions, civil litigation and criminal law
"Great Job. Daniel is very responsive and he understood what I needed done."
Ana C.
Fractional General Counsel for growing companies, mainly in the financial sector, including companies operating in Mexico or Latin America. My niche includes companies who need day to day legal services, but are not ready to hire an in-house lawyer, and companies whose in-house legal team needs additional support. I am admitted to practice law in the District of Columbia and Mexico. With a bicultural legal education and background, and an extensive network of contacts in both jurisdictions, I’m able to provide efficient and high-quality services to my clients. With more than 18 years of legal experience, I have: - Led the Legal Department of a financial institution held by a public company - Led the Legal Department of a family office holding investments in diverse sectors - Participated on several M&A transactions - Participated on an IPO process - Participated in the purchase of a banking institution in the U.S. by a foreign group of investors - Worked at law firms with international presence Legal experience mainly in Corporate Governance, Securities Regulations, M&A, Corporate Development, Contracts, Corporate Law, Compensation, Policy Development, Investor Relations, among others. Non-for-profit Board and pro-bono experience.
August 19, 2024
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Solo practitioner, licensed in New York State 27+ years. Areas of practice: Small Business Law, Commercial Contracts, Commercial Litigation, Employment Law & Litigation, Estate Planning, Business Succession Planning.
September 3, 2024
Richard H.
After 30 years of practice I large, publicly traded companies, I went out on my own. I engaged in general practice for 10 years before retiring. I continue to do work on a contract basis.
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Contracts
Referral Partner Agreement
Florida
Can a Referral Partner Agreement be terminated without notice?
Can a Referral Partner Agreement, which outlines the terms and conditions for a business partnership where one party refers customers to another in exchange for a commission, be terminated unilaterally by one party without providing any prior notice? I am a referral partner for a company and recently, without any warning, they terminated our agreement and stopped paying me commissions, leaving me without any income. I want to understand if this termination is legally valid and if I have any recourse to recover the unpaid commissions.
Ralph S.
What does the agreement say? You should follow the procedures in the contract. Parties can agree to pretty much anything because they have the freedom to contract. The court may choose not to enforce certain provisions of the contract based on how unfair it is but that's in litigation. If you were owed money under a contract, you should speak to an attorney about a breach of contract action. Alternatively if there wasn't a valid contract at the time- quantum meruit and or unjust enrichment. Having or not having a contract doesn't preclude you for being compensated for your services.
Transactional
Referral Partner Agreement
California
What are the key provisions that should be included in a Referral Partner Agreement?
I am a small business owner and I am in the process of establishing a referral partner program to expand my customer base. I have been approached by several potential partners who are interested in referring clients to my business in exchange for a commission. However, I am not familiar with the legal requirements and best practices for creating a Referral Partner Agreement. I want to ensure that the agreement protects both parties' interests and clearly outlines the terms and conditions of the partnership, including commission structure, exclusivity, termination rights, and confidentiality.
Gregory B.
This might not be the answer you expect, but I believe that the commercial or business terms are 100% the "key" or "most important" part of a Referral Partner Agreement. If you get that right, the legal provisions can be drafted to match, and you're much less likely to have a disgruntled partner overall. Specifically, the amount, frequency, and duration of the commission should coincide with other terms like exclusivity/non-exclusivity, how long commissions continue (i.e., one-time or for the duration of the end-user relationship), and other specifics that depend on the nature of your service, your customers, and your partners. Once you get the structure set, the legal provisions will naturally flow from there!
Business
Referral Partner Agreement
New York
Can you explain the key terms and obligations in a Referral Partner Agreement?
I am a small business owner considering entering into a Referral Partner Agreement with another company. This agreement would allow me to refer potential customers to their business in exchange for a commission on any resulting sales. However, I am unsure about the specific terms and obligations that should be included in this agreement to protect my interests and ensure a fair partnership. I would like to consult with a lawyer to understand the legal implications and requirements of such an agreement, as well as to clarify any potential risks or liabilities that I should be aware of.
Danny J.
When considering a Referral Partner Agreement, it's essential to focus on the most critical terms that can significantly impact your business. Here are five key elements you should pay close attention to: 1. Commission Structure: - Defines the compensation for successful referrals - Specifies how and when commissions are calculated and paid 2. Scope of Referral Relationship: - Outlines the specific products or services covered - Defines the territories or markets where referrals can be made 3. Confidentiality and Non-Disclosure: - Protects sensitive business information - Addresses the handling of customer data 4. Term and Termination: - Specifies the duration of the agreement - Outlines conditions for termination and any post-termination obligations 5. Indemnification and Liability: - Allocates responsibility for potential legal issues - May include limitations on liability for certain types of losses While these are crucial elements, it's important to note that a comprehensive Referral Partner Agreement typically includes several other terms and clauses tailored to the specific needs of the parties involved. The legal implications of such an agreement can be far-reaching and complex, potentially affecting various aspects of your business operations and liabilities. Given the intricacies involved and the potential impact on your business, it would be highly advisable to consult with a lawyer who specializes in business contracts. They can provide a thorough analysis of your specific situation, ensure all necessary terms are included, and help you navigate any potential risks or liabilities that may not be immediately apparent. Would you like to discuss how we could work together to draft a Referral Partner Agreement that comprehensively protects your interests?
Business Contracts
Referral Partner Agreement
New York
Can a referral partner agreement be terminated before the agreed-upon term if certain conditions are not met?
Can a referral partner agreement be terminated before the agreed-upon term if the referral partner fails to meet the minimum number of referrals specified in the agreement or breaches any other material terms, as I am a business owner who entered into a referral partner agreement with another company, but the other party has consistently failed to meet the minimum referral requirements, and I would like to explore my options for terminating the agreement early.
Damien B.
You are alleging a material breach of contract, rendering the whole agreement null and void. Sometimes, an agreement contains language stating that a breach of one provision is not a breach of the entire contract. Usually, a material breach that goes to the core of the agreement overrides such a provision.
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