Commercial Referral Fee Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commercial Referral Fee Agreement

"I need a Commercial Referral Fee Agreement for my technology consulting firm in Malaysia, where we'll pay 10% commission to business partners who refer clients to our cloud migration services, with quarterly payments and a minimum referral threshold of 5 successful deals."

Document background
The Commercial Referral Fee Agreement is essential for businesses operating in Malaysia who wish to formalize their referral arrangements and ensure compliance with local laws. This document is typically used when one party agrees to refer potential clients or business opportunities to another party in exchange for predetermined fees or commissions. The agreement needs to comply with Malaysian commercial law, including the Contracts Act 1950, Income Tax Act 1967, and where applicable, industry-specific regulations. It provides comprehensive coverage of referral mechanisms, compensation structures, compliance requirements, and risk allocation between parties. The document is particularly important in regulated industries where formal documentation of business relationships is required, and helps prevent disputes by clearly defining the rights, obligations, and expectations of all parties involved.
Suggested Sections

1. Parties: Identifies and provides details of the referring party and the recipient of referrals

2. Background: Sets out the context of the agreement and the parties' intentions regarding the referral arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Appointment and Scope: Establishes the referral relationship and defines its scope

5. Referral Process: Details the procedure for making and accepting referrals

6. Fees and Payment Terms: Specifies the referral fee structure, calculation method, and payment terms

7. Obligations of the Parties: Lists the key responsibilities of both the referring party and recipient

8. Representations and Warranties: Contains standard commercial warranties from both parties

9. Confidentiality: Protects confidential information shared during the referral process

10. Term and Termination: Specifies the duration of the agreement and termination rights

11. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment

Optional Sections

1. Compliance with Laws: Detailed section on regulatory compliance - needed when operating in regulated industries

2. Intellectual Property: Required when the arrangement involves use of trademarks or other IP

3. Data Protection: Detailed privacy provisions needed when personal data is involved in referrals

4. Non-Competition: Restrictions on competitive activities - include when exclusivity is required

5. Marketing and Promotion: Guidelines for marketing the referral relationship - needed for public-facing arrangements

6. Training and Support: Include when one party needs to provide training on products/services

7. Audit Rights: Rights to audit referral records - important for high-value arrangements

8. Insurance: Insurance requirements - include for high-risk activities or regulated sectors

Suggested Schedules

1. Schedule 1 - Referral Fee Structure: Detailed breakdown of fee calculations and payment terms

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

3. Schedule 3 - Approved Marketing Materials: Templates and guidelines for marketing communications

4. Schedule 4 - Service Level Agreement: Performance metrics and service standards

5. Schedule 5 - Compliance Requirements: Specific regulatory requirements and compliance procedures

6. Appendix A - Reporting Templates: Standard forms for referral tracking and reporting

7. Appendix B - Contact Details: Key contact information for both parties

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 Industries

Financial Services

Real Estate

Professional Services

Technology

Healthcare

Insurance

Education

Telecommunications

Management Consulting

Business Services

Retail

Manufacturing

Relevant Teams

Legal

Business Development

Sales

Compliance

Finance

Operations

Commercial

Partnerships

Marketing

Account Management

Risk Management

Relevant Roles

Business Development Manager

Sales Director

Legal Counsel

Commercial Director

Partnership Manager

Chief Executive Officer

Managing Director

Operations Manager

Compliance Officer

Finance Manager

Contract Manager

Channel Manager

Marketing Director

Account Manager

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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