Referral Agent Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Referral Agent Agreement

"I need a Referral Agent Agreement for my Dubai-based technology consulting firm to engage individual IT professionals who will refer enterprise software clients to us, with a tiered commission structure and strict confidentiality provisions."

Document background
The Referral Agent Agreement is essential for businesses operating in the UAE who wish to formally engage individuals or companies to refer potential clients or business opportunities. This document is specifically structured to comply with UAE legal requirements while avoiding the creation of a regulated commercial agency relationship under UAE Federal Law No. 3 of 1987. It is commonly used when companies want to expand their business reach through referral networks while maintaining clear boundaries in the relationship. The agreement covers crucial elements including referral mechanisms, fee structures, compliance with UAE laws (including anti-bribery and data protection), and appropriate dispute resolution provisions. It's particularly important in the UAE context where commercial relationships need careful structuring to avoid unintended regulatory consequences.
Suggested Sections

1. Parties: Identification of the principal company and the referral agent, including full legal names, registration details, and addresses

2. Background: Context of the agreement, nature of the principal's business, and purpose of the referral arrangement

3. Definitions: Key terms used throughout the agreement, including 'Referral Services', 'Successful Referral', 'Referral Fee', etc.

4. Appointment and Scope: Terms of appointment, nature of the relationship, confirmation of non-exclusive basis, and geographic scope

5. Referral Process: Detailed process for making referrals, including communication methods and information requirements

6. Obligations of the Referral Agent: Key responsibilities, performance standards, and compliance requirements

7. Obligations of the Principal: Principal's commitments regarding referral processing, communication, and support

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

9. Intellectual Property: Usage rights for trademarks, logos, and marketing materials

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: Compliance with UAE data protection laws and data handling requirements

12. Term and Termination: Duration of agreement and grounds for termination

13. Post-Termination: Obligations and rights after agreement ends, including treatment of pending referrals

14. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Compete: Restrictions on agent's ability to work with competitors, only included if specifically negotiated and ensuring compliance with UAE competition laws

2. Marketing and Promotion: Guidelines for marketing activities, if agent is permitted to promote the principal's services

3. Training and Support: Details of any training or support provided by principal, if applicable

4. Insurance: Insurance requirements for either party, if required based on nature of services

5. Force Majeure: Provisions for unforeseen circumstances preventing performance

6. Anti-Corruption: Specific anti-corruption provisions if dealing with government entities or high-risk sectors

7. Shariah Compliance: Additional provisions ensuring Shariah compliance if required by either party

Suggested Schedules

1. Schedule 1 - Referral Fee Structure: Detailed breakdown of fee calculations, tiers, and any bonus structures

2. Schedule 2 - Referral Process Flow: Step-by-step process flow for referrals including timelines and requirements

3. Schedule 3 - Reporting Templates: Standard formats for referral submissions and tracking

4. Schedule 4 - Approved Marketing Materials: Pre-approved materials and guidelines for marketing, if applicable

5. Appendix A - Contact Details: Key contact persons and escalation matrix for both parties

6. Appendix B - Compliance Requirements: Specific compliance requirements and certifications needed

Authors

Alex Denne

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

Relevant legal definitions
Relevant Industries

Financial Services

Real Estate

Professional Services

Technology

Healthcare

Education

Management Consulting

Insurance

Banking

Telecommunications

Business Services

Legal Services

Relevant Teams

Legal

Compliance

Business Development

Sales

Commercial

Finance

Operations

Risk Management

Marketing

Partner Relations

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Legal Counsel

Compliance Officer

Commercial Director

Partnership Manager

Chief Commercial Officer

Business Development Executive

Sales Manager

Agency Relationship Manager

Regional Director

Managing Director

Chief Executive Officer

Industries
UAE Federal Law No. 3 of 1987 (Commercial Agency Law): Regulates commercial agency relationships and provides protection for registered commercial agents. Important for structuring the referral relationship to avoid creating an inadvertent regulated agency arrangement.
UAE Federal Law No. 5 of 1985 (Civil Code): Contains fundamental principles of contract law, including formation, validity, and termination of contracts. Essential for ensuring the agreement meets basic contractual requirements under UAE law.
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Governs commercial transactions and business relationships. Relevant for defining the commercial nature of the referral relationship and associated obligations.
UAE Federal Law No. 4 of 2012 (Competition Law): Regulates competition and prevents monopolistic practices. Must be considered when drafting exclusivity clauses or territorial restrictions in the referral agreement.
UAE Federal Decree Law No. 45 of 2021 (Data Protection Law): Governs the protection and processing of personal data. Relevant if the referral arrangement involves sharing customer or contact information.
Federal Decree-Law No. 8 of 2017 on Value Added Tax: Establishes VAT obligations. Important for structuring referral fee arrangements and ensuring proper tax treatment of payments.
UAE Federal Decree Law No. 31 of 2021 (Anti-Bribery Law): Contains provisions against corruption and improper business practices. Essential for ensuring referral arrangements are compliant and not construed as improper inducements.
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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