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Referral Contract Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes and regulates a formal referral relationship between two or more parties. This agreement details the terms and conditions under which one party refers clients, customers, or business opportunities to another party in exchange for specified compensation. The document includes provisions for referral processes, fee structures, confidentiality obligations, data protection compliance under PDPA 2010, and other relevant Malaysian regulatory requirements. It provides legal protection for all parties involved while ensuring transparency in the referral relationship.

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What is a Referral Contract Agreement?

The Referral Contract Agreement is essential for businesses operating in Malaysia who wish to formalize their referral partnerships and protect their interests while ensuring compliance with local regulations. This document is typically used when establishing business relationships where one party will refer clients or opportunities to another in exchange for compensation. The agreement addresses key aspects such as referral mechanisms, fee structures, payment terms, confidentiality, data protection under Malaysian PDPA 2010, and compliance with anti-corruption laws. It's particularly relevant in today's interconnected business environment where formal referral networks are increasingly important for business growth and expansion in the Malaysian market.

What sections should be included in a Referral Contract Agreement?

1. Parties: Identifies and provides full details of the referring party and the recipient party, including registration numbers and registered addresses

2. Background: Explains the context of the referral arrangement and the parties' business relationship

3. Definitions: Defines key terms used throughout the agreement, including 'Referral', 'Qualified Lead', 'Referral Fee', etc.

4. Scope of Referral Arrangement: Details the specific products/services covered by the referral arrangement and the territorial scope

5. Referral Process: Outlines the specific procedures for making and accepting referrals

6. Parties' Obligations: Lists the specific duties and responsibilities of both the referring party and the recipient

7. Referral Fees and Payment Terms: Specifies the fee structure, calculation method, and payment terms for successful referrals

8. Confidentiality: Establishes obligations regarding confidential information shared during the referral process

9. Data Protection: Addresses compliance with PDPA 2010 and data handling requirements

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

11. Governing Law and Jurisdiction: Confirms Malaysian law as governing law and specifies jurisdiction for disputes

What sections are optional to include in a Referral Contract Agreement?

1. Non-Solicitation: Include when parties wish to prevent poaching of referred clients or employees

2. Exclusivity: Include when the referral arrangement is exclusive between the parties

3. Marketing and Branding: Include when specific guidelines for using parties' brands in referral activities are needed

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

5. Performance Targets: Include when minimum referral targets or performance metrics are required

6. Dispute Resolution: Include when parties want specific alternative dispute resolution procedures

7. Insurance Requirements: Include when specific insurance coverage is required for referral activities

8. Anti-Corruption Compliance: Include for high-value referral arrangements or government-related contracts

What schedules should be included in a Referral Contract Agreement?

1. Schedule 1: Referral Fee Structure: Detailed breakdown of fee calculations, tiers, and special rates

2. Schedule 2: Referral Process Workflow: Step-by-step process flow for referral submission, acceptance, and tracking

3. Schedule 3: Approved Products/Services: Comprehensive list of products/services covered under the referral arrangement

4. Schedule 4: Reporting Templates: Standard forms for referral tracking and commission reporting

5. Schedule 5: Contact Details: Key contact persons and escalation matrix for both parties

6. Appendix A: Data Protection Requirements: Detailed procedures for handling personal data in compliance with PDPA

7. Appendix B: Marketing Guidelines: Approved marketing materials and usage guidelines for referral activities

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Fee Agreement

Cost

Free to use

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