Referral Agreement (Quebec)
Business referral fee arrangement — CCQ Arts. 2098–2129
REFERRAL AGREEMENT / ACCORD DE RÉFÉRENCE D'AFFAIRES
Effective Date: [Effective Date]
This Referral Agreement (the 'Agreement') is entered into pursuant to articles 2098–2129 of the Code civil du Québec (C.c.Q.) governing contracts for services, and the applicable provisions of the Act respecting the protection of personal information in the private sector (Law 25).
1. PARTIES
REFERRING PARTY: [Referrer Name], with address at [Referrer Address] (the 'Referrer').
RECIPIENT: [Recipient Name], with address at [Recipient Address] (the 'Recipient').
2. SCOPE OF REFERRALS
The Referrer agrees to introduce and refer potential clients to the Recipient for the following products and services: [Service Description]
Referrals shall be made by the following mechanism: [Referral Mechanism].
A referral qualifies for a fee ('Qualifying Referral') only if it meets the following criteria: [Qualifying Criteria]
3. REFERRAL FEE
3.1 Fee Structure: [Fee Structure]. The referral fee is: [Fee Amount].
3.2 Payment: The Recipient shall pay the referral fee to the Referrer [Payment Timing]. All amounts are in Canadian dollars (CAD).
3.3 Tax: [Tax Obligations]. Each party is responsible for their own income tax obligations. The Referrer shall provide an invoice for each earned referral fee.
3.4 Disputes: If the Recipient disputes whether a referral qualifies, they shall notify the Referrer in writing within 15 days of the referred client's first transaction, with reasons.
4. EXCLUSIVITY, NON-SOLICITATION, AND CONFIDENTIALITY
4.1 Exclusivity: [Exclusivity].
4.2 Non-Solicitation: For [Non-Solicitation Period] after termination of this Agreement, the Referrer shall not directly solicit any client actually referred by Referrer to Recipient under this Agreement for competing services. This restriction applies only to clients actually referred, not to the Recipient's entire client base. This restriction is proportionate to the Recipient's legitimate business interests under CCQ art. 2089.
4.3 Confidentiality: Each party shall keep confidential all personal information of referred clients and all business information of the other party. Personal information is governed by Law 25 (Act respecting the protection of personal information in the private sector, RLRQ c P-39.1).
5. TERM AND TERMINATION
5.1 This Agreement commences on [Effective Date] and continues for [Term Length], unless terminated earlier.
5.2 Either party may terminate this Agreement by providing [Termination Notice] to the other party.
5.3 Referral fees earned before the termination date remain payable after termination for Qualifying Referrals made during the term.
5.4 This Agreement is governed by the laws of the Province of Quebec (Code civil du Québec). Any dispute shall be resolved before the courts of Quebec.
Referring Party
________________
Signature
Recipient
________________
Signature
What Is a Referral Agreement (Quebec)?
A Referral Agreement (Quebec) in Quebec a Referral Agreement is a formal legal document used in Quebec for business operations, corporate governance, and commercial transactions. Create a Quebec referral agreement covering referral fee structure, qualifying referrals, payment terms, exclusivity, non-solicitation, confidentiality, and termination under CCQ mandate and service contract provisions. This document operates within Quebec's civil law (Civil Code of Quebec) framework and is designed to provide clear legal protection and certainty for all parties involved. These laws establish the legal requirements for valid agreements, the rights and obligations of the parties, and the remedies available in case of breach or dispute. Understanding the applicable legal framework is essential for drafting an effective Referral Agreement that will be enforceable under Quebec law. The importance of having a properly drafted Referral Agreement cannot be overstated. Without a clear, written agreement, parties risk misunderstandings, disputes, and potential legal liability. A well-drafted Referral Agreement sets out the terms and conditions that govern the relationship between the parties, including their respective rights, obligations, and the procedures for resolving any disagreements that may arise. It serves as the primary reference point should any questions or disputes occur during the course of the arrangement. In today's regulatory environment in Quebec, compliance with legal requirements is increasingly important. A Referral Agreement helps confirm that all parties are meeting their legal obligations and provides a clear record of the agreed terms for future reference. Using a standardized Referral Agreement template offers several practical advantages. It confirms that all essential clauses are included, reduces the time and cost of drafting from scratch, and provides a professional framework that can be customized to suit specific needs. Whether you are an individual, a small business owner, or a large corporation operating in Quebec, having access to a well-structured template confirms consistency and completeness in your legal documentation.
When Do You Need a Referral Agreement (Quebec)?
A Referral Agreement is needed whenever parties in Quebec wish to formalize their arrangement regarding business operations, corporate governance, and commercial transactions. There are numerous situations in which this document becomes essential for protecting the interests of all involved parties. In a business context, you may need a Referral Agreement when entering into new commercial relationships, when formalizing existing arrangements that have previously been informal, when expanding your business operations, or when restructuring existing agreements. Companies registered with REQ should confirm proper documentation is maintained for all significant business transactions. You should also consider using a Referral Agreement when there has been a change in circumstances that affects an existing arrangement, when you need to comply with new regulatory requirements, when you wish to update outdated documentation, or when professional advisors recommend formalizing certain aspects of your affairs. In Quebec, maintaining current and accurate legal documentation is considered best practice and can help prevent costly disputes. It is generally advisable to prepare a Referral Agreement before any issues arise, rather than trying to document terms after a dispute has already begun. Proactive documentation provides clarity and reduces the potential for misunderstandings. If you are unsure whether you need this document for your specific situation in Quebec, consulting with a qualified legal professional can provide guidance tailored to your circumstances. The timing of executing a Referral Agreement is also important. In Quebec, certain documents must be executed before specific actions are taken or within prescribed time periods to be effective. Delaying the preparation of necessary legal documents can result in complications, lost rights, or additional costs. Therefore, it is recommended to prepare this document as early as possible once the need has been identified.
What to Include in Your Referral Agreement (Quebec)
A well-drafted Referral Agreement for use in Quebec should contain several essential elements to confirm it is legally effective and provides adequate protection for all parties. Party Identification: The document should clearly identify all parties involved, including their full legal names, addresses, and relevant identification numbers. For individuals in Quebec, this may include identity card or passport numbers. For companies, registration numbers and registered addresses should be specified. Clear identification prevents disputes about who is bound by the agreement. Recitals and Background: The document should include background information explaining the context and purpose of the arrangement. This helps establish the parties' intentions and can be important in interpreting the terms of the document if any ambiguity arises later. The recitals section provides valuable context for the operative provisions that follow. Operative Terms: The core terms and conditions should be set out clearly and thoroughly. This includes the rights and obligations of each party, any conditions or prerequisites, the duration of the arrangement, and any limitations or restrictions. All key terms should be defined precisely to avoid ambiguity and potential disputes. Payment and Financial Terms: Where applicable, the document should specify any payments, fees, deposits, or other financial considerations. The amounts, currency (CAD), payment schedules, and methods of payment should be clearly stated. Any provisions for late payment, interest charges, or adjustments should also be included. Term and Termination: The document should specify its duration, including the start date, end date or conditions for expiry, and any provisions for renewal or extension. The circumstances under which either party may terminate the arrangement early should be clearly defined, along with any notice requirements and the consequences of termination. Dispute Resolution: The document should include provisions for resolving any disputes that may arise, such as negotiation, mediation, arbitration, or litigation. In Quebec, parties may choose to specify the jurisdiction of Quebec courts and the applicable law. Including a clear dispute resolution mechanism can save significant time and expense if disagreements occur. Governing Law and Jurisdiction: The document should specify that it is governed by the laws of Quebec and that disputes shall be subject to the jurisdiction of Quebec courts. This is particularly important in cross-border transactions or where parties are based in different jurisdictions. Signatures and Execution: The document must be properly signed by all parties or their authorised representatives. In Quebec, certain documents may need to be witnessed, notarised, or executed as deeds to be legally effective. The date of execution should be clearly recorded, and each party should retain an original signed copy for their records.
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Forms Legal. (2026). Referral Agreement (Quebec) (Quebec) [Legal document template]. Forms Legal. https://forms-legal.com/quebec/business/contracts/referral-agreement-quebec
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author = {{Forms Legal}},
title = {Referral Agreement (Quebec) (Quebec)},
year = {2026},
howpublished = {\url{https://forms-legal.com/quebec/business/contracts/referral-agreement-quebec}},
note = {Free legal document template. Based on Civil Code of Québec (CCQ), Book Five: Obligations}
}Frequently Asked Questions
Referral fees in Quebec are payments made by a business (the recipient) to a referring party in exchange for sending qualified prospects who subsequently become customers. Referral fee structures include: (1) Flat fee per referral — a fixed amount paid for each qualified referral that converts to a customer (e.g., $500 per new customer acquired). (2) Percentage of first transaction — a percentage of the value of the first transaction concluded with the referred customer (e.g., 5–15% of the first year's contract value). (3) Percentage of lifetime value — an ongoing percentage of all revenues generated from the referred customer over a defined period (e.g., 10% for 24 months). (4) Tiered structure — the referral fee increases as the referring party sends more qualified referrals (e.g., $200 per referral for the first 10, $300 per referral for referrals 11–25, $400 for referrals above 25). For Quebec tax purposes: if the referring party is a business entity (corporation, self-employed individual), the referral fee is business income subject to income tax and must be invoiced with applicable QST (9.975%) and GST (5%) if the referrer is a registrant. If the referring party is an individual who does not operate a business, the referral fee may be characterized as employment income or other income depending on the frequency and regularity of referrals. Professional rules governing lawyers, notaries, and other licensed professionals in Quebec may restrict or prohibit referral fee arrangements.
Defining what constitutes a 'qualifying referral' is the most important drafting issue in a Quebec referral agreement, as it determines when the referral fee obligation is triggered. A well-drafted qualifying referral definition should address: (1) Referral source — the referral must be initiated by the referring party (through a specific introduction, recommendation, or communication), not through the recipient's own marketing efforts. The agreement should specify the referral mechanism (email introduction, online referral form, verbal referral with follow-up written confirmation). (2) New vs. existing customers — typically, the referral fee applies only to new customers who have no prior commercial relationship with the recipient, or who have been inactive for a defined period (e.g., 12 months). (3) Minimum transaction value — the referral fee is only payable if the referred customer concludes a transaction above a minimum value threshold. (4) Conversion period — the referral is only qualifying if the referred prospect converts to a customer within a defined period after the initial referral (e.g., 180 days). This prevents referrers from claiming fees on sales that result from the recipient's own subsequent marketing efforts. (5) Exclusion of pre-existing relationships — if the recipient already had contact with the prospect before the referral, the referral fee may not apply, unless the referring party demonstrably moved the prospect to engage.
Several professional categories in Quebec are subject to restrictions on referral fee arrangements under their governing professional legislation and codes of ethics. Key restrictions include: (1) Lawyers (avocats) — under the Code of Ethics of Advocates (RLRQ c. B-1, r. 3), a lawyer may not share fees with a non-lawyer for referring clients. Referral fees between lawyers are subject to specific restrictions (the referring lawyer must have done work on the file or obtained the client's consent). (2) Notaries — similar restrictions apply under the Code of Ethics of Notaries. (3) Real estate brokers — under the Real Estate Brokerage Act (RLRQ c. C-73.2), referral fees to or from unlicensed parties may violate the Act's prohibition on acting as a broker without a licence. (4) Insurance brokers — under the Act Respecting the Distribution of Financial Products and Services (RLRQ c. D-9.2), referral fees to unlicensed parties are restricted. (5) Financial advisors and securities dealers — referral fees from investment dealers and advisors are regulated by the Canadian Investment Regulatory Organization (CIRO) rules and may require specific disclosure to clients. Companies operating in regulated industries should obtain legal advice before implementing referral programs to ensure compliance with applicable professional regulations and avoid potential AMF (Autorité des marchés financiers) enforcement action.
Referral agreements in Quebec may include exclusivity and non-solicitation provisions, subject to the general limitations of Quebec civil law. Exclusivity provisions — requiring the referring party to refer customers only to the recipient and not to competing businesses — are generally enforceable in B2B referral agreements, as long as they are limited in scope (specific categories of products or services) and time. However, very broad exclusivity provisions that prevent a business from referring clients to anyone other than a specific recipient for any purpose may be challenged as an unreasonable restraint on trade under the Competition Act (R.S.C. 1985, c. C-34) or as an abusive clause under art. 1437 C.c.Q. Non-solicitation provisions — preventing the referring party from soliciting the recipient's customers for their own or a competitor's services — are typically enforceable for 12–24 months after termination of the referral agreement, provided they are limited in scope to customers actually referred by the referring party (not the recipient's entire customer base). If the referring party is an individual (natural person), art. 2089 C.c.Q. requires non-competition and non-solicitation restrictions to be proportionate to the legitimate interests being protected. The agreement should clearly distinguish between non-solicitation (which is permitted and enforceable for reasonable periods) and non-competition (which is more broadly restricted for individual referrers).
A Referral Agreement (Quebec) does not legally require a lawyer in Quebec, and individuals and businesses may draft and execute the document independently. However, seeking independent legal advice from a qualified Quebec lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Superior Court of Québec has jurisdiction over disputes arising from this type of document, and Registraire des entreprises du Québec may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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