Referral Agreement Checklist

A referral agreement is a legal document that outlines the terms and conditions of a partnership between two businesses or individuals. In this agreement, one party agrees to refer clients or customers to the other party in exchange for a fee or other compensation.

To ensure that your referral agreement is comprehensive and legally binding, it`s important to create a checklist of key elements to include. This checklist can help you avoid any potential misunderstandings or disputes that may arise in the future.

1. Definition of Terms: Start by defining the key terms used throughout the agreement. This includes terms like “referral fee,” “referred client/customer,” “lead,” and “partner.”

2. Scope of the Agreement: Clearly define the scope of the agreement, including the specific services or products that will be referred, the geographic areas, and the duration of the agreement.

3. Referral Fee Compensation: Specify the referral fee or compensation that the partner will receive for any clients or customers referred. It`s important to outline how this fee will be calculated and when it will be paid.

4. Client Obligations: Clearly outline the obligations of the referred clients or customers. This may include specific payment terms, delivery expectations, product/service warranties, and any other relevant information.

5. Confidentiality and Non-Disclosure: Include provisions relating to confidentiality and non-disclosure to protect the sensitive information of both parties.

6. Limitations of Liability: Define the limitations of liability in the agreement. This is important to limit potential damage in the event of any legal disputes.

7. Termination: Specify the conditions under which the agreement may be terminated, and the notice required before termination.

8. Dispute Resolution: Include a process for resolving any disputes that may arise between the parties. Consider options like mediation or arbitration to avoid costly litigation.

9. Governing Law: Specify the governing law that will apply to the agreement. This helps to avoid confusion when disputes arise in different jurisdictions.

10. Signatures: Finally, ensure that the agreement is signed by both parties to indicate their agreement to the terms and conditions outlined in the document.

In conclusion, a referral agreement checklist can help ensure that all necessary elements are included in the agreement, making it legally binding and comprehensive. By carefully defining the terms, scope, compensation, obligations, confidentiality, liability, termination, dispute resolution, governing law, and signatures, you can create a sturdy foundation for a successful business partnership.

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