How to Write a Reference Agreement?

reference agreement template

Writing a reference agreement is important for many reasons. One is to have a written document of your legal agreement that is considered valid in court, another is so that both parties have a reminder of what they agreed upon. If an agreement isn't in written form, there is a high likelihood that the obligations will not be met as, according to, proving that a verbal agreement even existed in the first place if it wasn't documented is very hard in court. With that said, here are some helpful tips in writing your reference agreements.

1. Be Clear and Concise

A written agreement must be legally secure while at the same time easy to understand. As much as possible, it must contain simple, everyday words that anyone can understand.

2. Include Important Details

Important details may include, but are not limited to, the full name of both participants (the name found in their birth certificates), the companies or firms involved, complete addresses, contact numbers, emails, etc. Important details may also include specifications in the legal document that are too important to just be kept at word-of-mouth level. As much as possible, make sure everything is written down and clear to avoid things such as loopholes, misunderstanding, etc.

3. Give Assurance of Confidentiality

When your client is assured that any sensitive business information is kept confidential from anyone without the authority to know about it, this builds trust and gives off an aura of professionalism. Not only will this help with your transaction, but a client who knows they can trust you is a client who is less likely to cause problems in the future.

4. Discuss Payment Methods

In the case of tenancy or service agreements, this is especially important as it gives information on how much is to be paid when the due dates are, and consequences should the due fees not come on time. Don't forget to list the terms of payment involving performance; an example could look something like "Payment shall only be given when assigned task has been completed according to standards," or anything close to that.

5. Add Ways to Settle Any Arising Issues

Okay, admit it. No one wants to take bad circumstances to court if they can avoid it, right? It costs a lot of time and money and it never looks pretty. Hence, if you want transactions to run smoothly despite any errors, misgivings, or qualms, include methods of resolving the matter outside of court like having a meeting with both parties to discuss what went wrong and how it can be fixed. One purpose of a written contract or agreement in the first place is so that both parties can, as much as possible, keep it civil.

6. Include the Terms of Termination

Terms of termination are what you use when faced with violations beyond second chances. Some grounds for this can be (1) repeated offenses, (2) breach of terms and conditions, and (3) failure to pay rent or service—all depending on how your business agreement was made, its terms and conditions, and what standards must be met.

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