What is this mutual introducer contract?
The basics: This introducer contract sets out the terms between two parties, where each party is referring or introducing potential new customers to the other party, in return for a fee (usually on a commission basis). It is sometimes known as a sales commission agreement or referral agreement. Find out more by reading these FAQs.
Mutual introductions: This introducer contract is for use with mutual or two-way referrals/introductions. Where the introductions/referrals are only being made by one party (one-way introductions), this one-way introducer contract template should be used instead.
Why does your business need an introducer contract?
Benefits both parties: Using an introducer contract can benefit both parties by formalising the relationship between them. Getting things in writing reduces the risk of potential future disputes and misunderstandings, for example in relation to commission amounts and triggers for payments.
When should I consider using an introducer contract?
Grow your business: formal introducer contract can be a great way to bring in streams of new work and, ultimately, increase revenue for your business. This could include the following situations, for example:
-
Strategic partnerships: where companies agree to work together to expand each other's customer base through customer referrals.
-
Freelancers and agencies: freelancers or agencies may introduce clients to other freelancers or agencies (and vice versa) in exchange for an introducer fee or commission.
What does this mutual introducer contract include?
Key provisions: Docue’s introducer contract includes provisions to protect both party's interests, including:
- Fees and payment: this sets out the type of fees due (e.g. commission per contract entered into or a fixed fee) and the payment terms relating to the payment of those fees. It also clarifies what the triggers for payments become due are (e.g. that a contract is entered into with the customer within a defined period of the introduction being made);
- Exclusivity: the introducer contract contains options for exclusive, non-exclusive and sole appointments, so there can be no dispute over the basis on which the introducing party is being engaged;
- Liability: this provision of introducer contract includes optional financial caps on each party's liability in order to limit potential exposure in the event the other party has a valid contractual claim;
- Scope of activities: you can tailor the scope of the activities that the introducing party is expected to undertake (e.g. whether active promotion / advertising of the company's goods and services is required) so that it is customised to your specific needs;
- Introducing party's obligations: the introducing party's obligations can be clearly defined and tailored to your requirements, so it is clear what the introducing party has authority to do under the agreement;
- Termination: in the introducer contract, you can define each party’s rights to bring the arrangement to an end early;
- Other legal protections: the introducer contract also includes the option to include additional legal protections, e.g. in relation to confidential information and intellectual property rights; and Add your own sections: if you already have your own provisions that you would like to include in the introducer contract Docue also gives users the chance to write their own terms.
Read our three top tips for drafting your introducer contract here.
When can this introducer contract be used?
Introductions in the UK: This introducer agreement template is designed to be used in relation to introductions being made in the UK under the laws of England and Wales. Different jurisdictions and countries have different laws surrounding introductions/referrals (who may or may not be considered commercial agents), so we would not recommend using this agreement outside the UK.
Different to sales agents: You should not use this document where you want the introducing party to have the authority to conduct any negotiations or to enter into contracts on your behalf - in this case, they would be acting as an agent and an agency agreement should be entered into.
Why Docue?
Easy to use: With Docue, you can create a top-quality introducer contract in minutes. The introducer contract includes model clauses designed by business lawyers to help you draft the contract yourself and tailor it to your requirements. If you get stuck along the way, lawyer-drafted guidance notes are there to help you create your bespoke introducer contract.
Full contract process: Once you have created a contract that is tailored to your business needs, you can send the contract to each of the parties for e-signing using Docue’s e-signature function. After the contract is signed, you can store the agreement in Docue’s storage vault, Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Set reminders: You can ensure you never miss a contract renewal again by enabling Docue’s handy reminders to notify yourself of the next upcoming deadline.
Tags: introducer contract, introducer contract template, mutual referrals, mutual introductions, strategic partnership agreement
