Entering into a referral agreement has financial benefits to both parties. An Agent can earn income without the need to carry inventory or provide a service and a Company can increase their footprint in the marketplace at a lower overhead cost by paying for results only.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only.
A Utah Referral Agreement for Sale of Automobile is a legally binding contract that outlines the terms and conditions between two parties, where one party (the referrer) refers potential customers to another party (the seller or dealership) in exchange for a referral fee or commission upon the successful sale of an automobile. This agreement is often used by individuals or businesses who have a network or connection to potential buyers and want to earn a commission for referring them to a reputable automobile seller in Utah. It ensures that both parties are clear on their rights, obligations, and the terms for the referral process. The main components that a Utah Referral Agreement for Sale of Automobile typically includes are: 1. Parties involved: Clearly state the legal names and contact information of both the referrer and seller. 2. Referral fee or commission: Specify the amount or percentage of the referral fee or commission that the referrer will receive upon a successful sale. This can be a fixed amount or a percentage of the sale price. 3. Terms of the referral: Define the duration or time frame during which the referral agreement will be valid. This can be for a specific period or until either party terminates the agreement. 4. Exclusivity: State whether the referrer has exclusive rights to refer potential buyers or if the seller can also accept referrals from other sources. 5. Referral requirements: Outline the qualifications and criteria necessary for a referral to be considered valid, such as a successful sale completion within a certain time frame. 6. Payment terms: Specify how and when the referral fee or commission will be paid, whether it's upon sale completion, periodically, or in any other agreed manner. 7. Non-disclosure and non-compete clauses: Include provisions to protect any confidential information shared during the referral process and prevent the referrer from engaging in similar referral activities with competitors. Types of Utah Referral Agreements for Sale of Automobile: 1. Individual Referral Agreement: This is an agreement between an individual referrer and a seller. The referrer refers potential buyers in their personal capacity. 2. Business Referral Agreement: This agreement is between a business entity acting as a referrer and a seller. The business leverages its network or customer base to refer potential buyers. 3. Exclusive Referral Agreement: In this type of agreement, the referrer has exclusive rights to refer potential buyers and is the sole source for referrals to the seller. It is important for both parties to thoroughly review and understand the terms and conditions of the Utah Referral Agreement for Sale of Automobile before signing, ensuring that all relevant local laws and regulations are complied with.
