The Commercial Referral Fee Agreement is essential for businesses operating in Indonesia who wish to formalize their referral partnerships and ensure compliance with local regulations. This document is typically used when companies or individuals want to establish a structured referral program, defining how one party will refer potential clients or opportunities to another in exchange for compensation. The agreement addresses key aspects such as referral processes, fee calculations, payment terms, and compliance with Indonesian laws, including the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations. It's particularly important in the Indonesian context where business relationships often rely on formal documentation and clear regulatory compliance, especially regarding payment structures and tax obligations. The agreement helps prevent disputes by clearly outlining expectations, responsibilities, and compensation mechanisms while ensuring alignment with local legal requirements.
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1. Parties: Identifies and provides full details of the parties entering into the agreement
2. Background: Sets out the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the referral relationship and defines the scope of referral services
5. Referral Process: Details the specific process for making and tracking referrals
6. Fee Structure and Payment Terms: Specifies the referral fees, calculation method, and payment terms
7. Obligations of Referrer: Lists the duties and responsibilities of the party making referrals
8. Obligations of Principal: Lists the duties and responsibilities of the party receiving referrals
9. Term and Termination: Specifies the duration of the agreement and termination provisions
10. Confidentiality: Establishes confidentiality obligations regarding shared information
11. Intellectual Property: Addresses the use of trademarks, logos, and other IP in the referral process
12. Representations and Warranties: Contains standard representations and warranties from both parties
13. Compliance with Laws: Ensures compliance with Indonesian laws, including anti-bribery and tax regulations
14. Dispute Resolution: Specifies the process for resolving disputes under Indonesian law
15. General Provisions: Contains standard boilerplate clauses including notices, amendments, and governing law
1. Non-Compete: Include when parties wish to restrict competitive activities during and after the agreement
2. Data Protection: Include when personal data will be shared as part of the referral process
3. Marketing and Promotion: Include when specific marketing activities are part of the referral arrangement
4. Training and Support: Include when the principal will provide training or support to the referrer
5. Insurance: Include when specific insurance requirements are needed for the referral activities
6. Force Majeure: Include when parties want specific provisions for unforeseeable circumstances
7. Anti-Money Laundering: Include for financial services or high-value referrals
8. Subcontracting: Include when referrer may need to subcontract certain activities
1. Fee Schedule: Detailed breakdown of referral fees, commissions, and calculation methods
2. Referral Process Flowchart: Visual representation of the referral process and procedures
3. Approved Marketing Materials: List and examples of approved marketing materials and messaging
4. Reporting Templates: Standard templates for tracking and reporting referrals
5. Service Level Agreement: Specific performance metrics and service levels if applicable
6. Compliance Checklist: Checklist of regulatory requirements and compliance procedures
7. Contact Details: List of key contacts and escalation procedures for both parties
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