The Agent Referral Agreement is essential for businesses operating in Nigeria who wish to expand their market reach through third-party referral partners. This document is particularly relevant in today's interconnected business environment where companies seek to leverage local market knowledge and existing business networks. The agreement provides a comprehensive framework for managing referral relationships, detailing commission structures, operational procedures, and compliance requirements under Nigerian law. It protects both the principal and the agent by clearly defining roles, responsibilities, and compensation terms while ensuring alignment with local regulatory requirements, including the Nigerian Data Protection Regulation and relevant commercial laws. Companies typically implement this type of agreement when establishing new distribution channels, entering new markets, or creating structured referral programs.
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1. Parties: Identifies and provides full legal details of the principal company and the referring agent
2. Background: Explains the context of the agreement and the parties' intentions regarding the referral arrangement
3. Definitions: Defines key terms used throughout the agreement, including 'Referral', 'Qualified Lead', 'Commission', etc.
4. Appointment and Scope: Establishes the agent's appointment, territory, and nature of the referral relationship
5. Referral Process: Details the specific procedures for making and tracking referrals
6. Commission Structure: Outlines the commission rates, calculation methods, and payment terms
7. Obligations of the Agent: Lists the agent's duties, responsibilities, and performance standards
8. Obligations of the Principal: Specifies the principal's commitments and responsibilities
9. Confidentiality: Protects confidential information exchanged during the referral process
10. Term and Termination: Specifies the duration of the agreement and conditions for termination
11. Non-Solicitation: Prevents poaching of referred clients and protection of business relationships
12. Compliance with Laws: Ensures adherence to Nigerian laws, including anti-corruption and data protection
13. Dispute Resolution: Specifies procedures for resolving disputes under Nigerian law
14. General Provisions: Includes standard clauses like notices, amendments, and governing law
1. Training and Support: Details any training or support provided to the agent - include when the principal provides substantial training
2. Marketing Guidelines: Specifies rules for using principal's branding - include when agent will conduct marketing activities
3. Performance Targets: Sets minimum performance requirements - include for performance-based agreements
4. Exclusivity: Restricts agent from working with competitors - include when exclusive arrangement is required
5. Insurance Requirements: Specifies required insurance coverage - include for high-risk or regulated industries
6. Data Protection Compliance: Detailed NDPR compliance requirements - include when handling sensitive personal data
7. Anti-Money Laundering: Specific AML compliance procedures - include for financial service referrals
8. Sub-Agents: Rules for appointing sub-agents - include when sub-agents are permitted
1. Commission Structure Schedule: Detailed breakdown of commission rates, tiers, and calculation methods
2. Referral Process Workflow: Step-by-step process flow for making and tracking referrals
3. Territory Definition: Detailed description of geographical or market segment coverage
4. Approved Marketing Materials: Templates and guidelines for marketing communications
5. Service Level Agreement: Performance metrics and response time requirements
6. Compliance Checklist: Required documentation and compliance steps for referrals
7. Contact Details: Key contact information for both parties
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