An introducer agreement is an important tool for any business looking to expand its reach and grow its customer base. Essentially, this type of agreement outlines the terms and conditions under which one business (the “introducer”) will introduce potential customers or clients to another business (the “introduced party”) in exchange for a commission or other compensation.
If you’re a business owner in the UK looking to enter into an introducer agreement, it’s important to have a solid template in place to ensure that both parties are clear on their obligations and expectations. Here are some key elements to consider when drafting your introducer agreement template.
1. Definitions: Begin by clearly defining the terms used throughout the agreement, such as “introducer”, “introduced party”, “customers”, “commission”, and so on. This will help to avoid confusion and ensure that both parties are on the same page.
2. Scope of agreement: Outline the scope of the agreement, including the specific products or services that the introduced party will offer to customers introduced by the introducer, the geography in which the agreement will operate, and any exclusivity or non-exclusivity clauses.
3. Obligations of the introducer: Specify the obligations of the introducer, such as the requirement to make introductions in good faith, the responsibility for obtaining any necessary consents or approvals from customers, and any reporting requirements.
4. Obligations of the introduced party: Specify the obligations of the introduced party, such as the requirement to pay commission or other compensation to the introducer, the responsibility for providing excellent customer service to introduced customers, and any reporting requirements.
5. Commission or compensation: Clearly define the commission or other compensation to be paid to the introducer, including the rate or percentage, the method of calculation, and the timing of payments.
6. Termination: Include provisions for termination of the agreement, such as for breach of contract, non-performance, or other reasons.
7. Governing law and jurisdiction: Specify the governing law and jurisdiction applicable to the agreement, which should be the law and jurisdiction of England and Wales.
By incorporating these key elements into your introducer agreement template, you can ensure that both parties are clear on their obligations and expectations, and can work together effectively to grow their businesses. As always, it’s important to work with a qualified legal advisor to ensure that your agreement complies with all relevant laws and regulations in the UK.