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Car Referral Fee Agreement Template for England and Wales

A Car Referral Fee Agreement is a legal contract governed by English and Welsh law that establishes the terms and conditions under which one party agrees to refer potential car buyers to another party in exchange for a fee. The agreement outlines referral mechanisms, fee structures, payment terms, and obligations of both parties while ensuring compliance with consumer protection, data privacy, and financial services regulations. It provides legal protection for both the referrer and the receiving party while establishing clear performance expectations and compensation arrangements.

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What is a Car Referral Fee Agreement?

A Car Referral Fee Agreement is essential when establishing formal referral relationships in the automotive sector. This document, governed by English and Welsh law, is commonly used when car dealerships, brokers, or other automotive businesses want to create structured referral networks. The agreement typically includes detailed provisions for referral processes, commission structures, payment terms, and compliance requirements. It's particularly important for protecting both parties' interests while ensuring adherence to relevant automotive industry regulations, consumer protection laws, and data privacy requirements.

What sections should be included in a Car Referral Fee Agreement?

1. Parties: Identifies all parties to the agreement with full legal names and addresses

2. Background: Explains the context and purpose of the referral arrangement

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

4. Referral Services: Details the scope and nature of referral services to be provided, including process and requirements

5. Fee Structure: Specifies referral fees, payment terms, calculation methods, and payment conditions

6. Obligations of Parties: Lists responsibilities and obligations of each party, including quality standards and compliance requirements

7. Term and Termination: Specifies duration of the agreement and circumstances for termination

8. Confidentiality: Covers handling of confidential information and trade secrets

9. Governing Law: Specifies that the agreement is governed by the laws of England and Wales

What sections are optional to include in a Car Referral Fee Agreement?

1. Non-Compete: Restricts parties from engaging in competitive activities during and after the agreement term

2. Insurance: Details required insurance coverage and minimum policy requirements

3. Marketing Guidelines: Specifies permitted marketing practices and approval requirements for promotional materials

4. Data Protection: Detailed procedures for handling personal data in compliance with UK GDPR

What schedules should be included in a Car Referral Fee Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of fee structure, calculations, and payment terms

2. Schedule 2 - Service Level Agreement: Specific performance metrics, response times, and service standards

3. Schedule 3 - Referral Process: Step-by-step procedure for making and handling referrals

4. Schedule 4 - Approved Marketing Materials: Templates and guidelines for approved marketing content and materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Document Type

Referral Agreement

Sector

Sales

Cost

Free to use

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