REFERAL Clause Samples

A referral clause establishes the terms under which one party may refer clients, customers, or business opportunities to another party, often in exchange for a fee or commission. Typically, this clause outlines the process for making referrals, eligibility criteria, and the calculation and timing of any referral payments. Its core practical function is to incentivize parties to generate new business leads while clearly defining the rights and obligations related to such referrals, thereby preventing disputes over compensation or the referral process.