The formal document that defines the relationship between two business organizations when a client or customer is referred by one party to another to gain a reward is termed as a referral agreement. A Law firm that specializes in referral agreements in Las Vegas, NV helps businesses and individuals with such agreements and other legal needs.
There are several hooks and nooks in legal documents like a referral document. However, some clauses are like an absolute mandate. Know about such clauses for referral documents given below.
Primary clauses to include in the referral document
- Nature of the business agreement
Details that define the relationship between the two parties must be included as a primary clause. For example, which one of the two parties is the referrer and which one is the referee, the payment procedures and others.
An exclusivity clause must be blocked from your side so that the other party cannot enter into similar arrangements with some other organization. At the same time, this clause applies to you as well preventing to engage in similar contracts with some other party.
- Time duration
The parties must mention the duration of the agreement. It can be a long-termed or short-termed agreement. Short-term agreements are precisely suitable for a business handling time-sensitive events. Long-term referral programs are ongoing contracts that are subjected to an end only when one party intends to.
- Referral fees
The method of calculating the referral fees must be defined clearly. The fees can also be generated and calculated based on commission programs.
- The process involved
The mode taken to run the referral process must be defined in the agreement. The entire functionality of the referral process including its efficacy has to be standardized.
- Use of intellectual property
The use of any relevant intellectual property must be licensed and clearly define when the parties must not misuse the intellectual properties belonging to either of them.
- Privacy laws compliant
The confidentiality must be maintained and the referral agreement must be compliant with privacy laws.
The key upshot from the clauses
The clauses ensure that the agreement encompasses all the points that make the referral process a mutually beneficial one for both parties.