Travel Agency Settlement Agreement
This Travel Agency Settlement Agreement ("Agreement") is entered into as of [Month Day, Year], by and between [Your Company Name], a corporation duly organized and existing under the laws of [State of Incorporation] with its principal place of business located at [Address] ("Travel Agency"), and [Airline Name], a corporation incorporated and existing under the laws of [State of Incorporation of Service Provider] with its principal business address at [Address] ("Service Provider"). Hereinafter, the Travel Agency and the Service Provider may be referred to individually as a "Party" or collectively as the "Parties."
1. Preamble
This section of the Travel Agency Settlement Agreement outlines the foundational intent and framework for the financial interactions between the Service Provider and the Travel Agency. Key elements include:
1.1 Introduction to Services and Intent
Service Description: The Service Provider offers an array of travel-related services, which the Travel Agency will facilitate and sell to its customer base.
Purpose of the Agreement: The primary intent of this Agreement is to establish a clear, systematic framework for settling all financial transactions that arise from the sale of these services. This includes the detailed handling of payments, fees, and other charges associated with the transactions.
1.2 Goals for Financial Transactions
Accurate Calculation and Reporting: Ensuring that every financial transaction is calculated and reported with precision to avoid discrepancies and maintain transparency.
Timely Reconciliation: Implementing a process to reconcile all transactions within stipulated timelines, thereby ensuring operational efficiency and financial accuracy.
Preservation of Trust and Accountability: Establishing a reliable and transparent financial relationship between the Travel Agency and the Service Provider to uphold and enhance mutual trust and accountability.
2. Financial Settlement
The procedures for financial settlement encompass several critical processes:
2.1 Remittance of Payments
2.2 Invoice Management and Review
Invoice Provision: The Service Provider will provide the Travel Agency with a detailed invoice that lists all transactions, applicable commission rates, fees, and other chargeable items.
Invoice Review Period: The Travel Agency is required to review all invoices within fifteen (15) business days of receipt. Any discrepancies identified during this review must be communicated to the Service Provider within this period.
2.3 Resolution of Discrepancies and Payment Timeline
Discrepancy Resolution: Following the identification and communication of any discrepancies, both parties shall work to resolve these issues promptly.
Final Payment: Subsequent to resolving any discrepancies, the due payments shall be made within five (5) business days.
2.4 Late Payment Penalties
3. Commission and Fees
The framework for commissions and additional fees includes:
3.1 Commission Structure
3.2 Fee Deductions
Administrative Fees: Administrative fees related to transaction management, promotional activities, and customer support are fixed at $5.00 per transaction. These fees are deducted from the gross transaction amount before calculating the net amount payable to the Service Provider.
4. Audit and Reporting
The guidelines for auditing and reporting are designed to ensure ongoing transparency:
4.1 Audit Rights
4.2 Cooperation and Access during Audits
4.3 Regular Reporting
5. Dispute Resolution and Governing Law
In the event of any dispute arising under or in connection with this Agreement, the Parties shall first attempt to resolve the dispute through good faith negotiation. If the dispute cannot be resolved by negotiation within thirty (30) days, it shall then be resolved by arbitration in accordance with the rules of the American Arbitration Association. This Agreement shall be governed by and construed in accordance with the laws of [State], exclusive of its choice of law principles.
6. Confidentiality and Data Protection
The Parties agree to keep all financial transactions and records confidential and shall not disclose such information to any third party without prior written consent of the other Party, except as required by law. Both Parties shall implement adequate data protection measures to safeguard personal and financial information, in compliance with applicable laws and regulations.
IN WITNESS WHEREOF, the Parties hereto have duly executed this Travel Agency Settlement Agreement:
Name: [Your Name]
Company Name: [Your Company Name]
Date: [Month Day, Year]
Name: [Representative Name]
Company Name: [Airline Name]
Date: [Month Day, Year]
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