The Referral Commission Agreement is essential for businesses operating in Nigeria that wish to expand their customer base through formal referral partnerships. This document is commonly used when a company wants to incentivize third parties to refer new clients or customers in exchange for commission payments. It ensures compliance with Nigerian legal requirements, including the Companies and Allied Matters Act 2020, anti-corruption laws, and tax regulations. The agreement typically includes detailed commission structures, payment terms, referral tracking mechanisms, and compliance obligations. It's particularly important in regulated industries where transparency in business relationships is crucial and where clear documentation of referral arrangements is required for audit and regulatory purposes.
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1. Parties: Identification of the referrer and the company, including full legal names and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement including 'Referral', 'Commission', 'Successful Referral', etc.
4. Appointment and Scope: Terms of appointment of referrer and scope of referral services
5. Referral Process: Detailed process for making and tracking referrals
6. Commission Structure: Commission rates, calculation methods, and qualifying criteria
7. Payment Terms: Timeline and method of commission payments, including currency and payment details
8. Obligations of the Parties: Specific duties and responsibilities of both parties
9. Compliance and Ethics: Anti-corruption provisions and compliance with Nigerian laws
10. Confidentiality: Protection of confidential information shared during the referral process
11. Term and Termination: Duration of agreement and termination provisions
12. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement
1. Non-Compete: Restrictions on referrer's ability to work with competitors, include if exclusivity is required
2. International Referrals: Special provisions for cross-border referrals, include if international business is anticipated
3. Data Protection: Detailed data protection obligations, include if personal data will be processed
4. Training and Support: Company's obligations to train and support referrer, include for complex products/services
5. Marketing Guidelines: Rules for using company's brand and marketing materials, include if referrer will conduct marketing
6. Dispute Resolution: Specific dispute resolution procedures, include if alternative to court proceedings is desired
7. Force Majeure: Provisions for unforeseen circumstances, include if long-term agreement
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products/services
2. Schedule 2 - Referral Procedures: Step-by-step process for making and processing referrals
3. Schedule 3 - Reporting Template: Standard format for tracking and reporting referrals
4. Schedule 4 - Compliance Checklist: Anti-corruption and compliance requirements checklist
5. Appendix A - Contact Details: Key contact persons and their details for both parties
6. Appendix B - Approved Marketing Materials: List of approved marketing materials and usage guidelines
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