Free Referral Agreement

This Referral Agreement (the "Agreement") is entered into on [Date], by and between [Your Name] ("Referrer") and [Referee's Name] ("Referee"). The purpose of this Agreement is to establish the terms and conditions governing the referral of potential clients, customers, or business opportunities by the Referrer to the Referee, with compensation to be provided for successful business transactions resulting from such referrals.

1. Obligations of the Parties

1.1 Referrer's Obligations

The Referrer agrees to provide genuine and high-quality referrals to the Referee. This includes ensuring that referrals are relevant to the Referee's business and meet pre-agreed criteria for suitability. The Referrer also commits to disclosing any potential conflicts of interest that may arise in the course of making referrals.

1.2. Referee's Obligations

The Referee pledges to compensate the Referrer fairly and promptly for successful referrals. Compensation should be commensurate with the value of the business transactions generated from the referrals. The Referee also agrees to conduct all business transactions resulting from referrals in a professional, ethical, and lawful manner.

2. Compensation

2.1 Referral Fee Structure

The Referee agrees to pay the Referrer a referral fee equivalent to 10% of the final transaction value each time a referred client successfully conducts business with the Referee. The parties may agree to adjust the referral fee percentage based on specific circumstances or types of referrals.

2.2 Payment Terms

The parties involved will agree upon the preferred method of payment and establish any supplementary conditions about the transaction of the payment. It is expected that referral fees, which are a result of the relevant business transactions completed, shall be remitted within a timeframe of thirty days after the conclusion of these transactions.

3. Termination

Either party may terminate this Agreement with 30 days' prior written notice. Upon termination, the Referee must settle all outstanding referral fees for business transacted before the termination date. The parties will also outline procedures for finalizing ongoing referrals and transitioning any pending referrals.

4. Confidentiality

4.1 Definition of Confidential Information

For this Agreement, the term "Confidential Information" has been defined as such - it encompasses a variety of aspects relevant to the business. These comprise business strategies that the company has designed to propel toward its goals, along with lists that contain information about the company's customers. Furthermore, Confidential Information also pertains to the pricing information set by the company for its products or services.

4.2 Non-Disclosure Obligation

The individual or entity acting as the Referrer and the individual or entity acting as the Referee both commit and pledge to maintaining and ensuring the confidentiality, secrecy, and privacy of the Confidential Information. They both come to a consensus and concur to abstain from using or revealing such information except when it is deemed necessary or vital for the fulfillment, accomplishment, and realization of their respective roles, responsibilities, and duties under this Agreement.

5. Governing Law and Jurisdiction

This Agreement shall be governed by the laws of [Governing Law State]. The parties consent to the exclusive jurisdiction of the courts in [Governing Law State] for any disputes or legal proceedings arising out of or related to this Agreement.

6. Entire Agreement

This Agreement constitutes the entire understanding between the parties concerning the subject matter herein and supersedes all prior agreements, discussions, representations, and understandings, whether written or oral, relating to the referral arrangement outlined herein.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

[Your Name]

[Referee's Name]

Agreement Templates @ Template.net