A letter of agreement is a document that outlines the terms and conditions of a working relationship between two parties. The letter can govern a working relationship between an employer and an employee or a contractor and a company.
To protect both parties in the agreement, it’s essential to include all the relevant information about the agreement. Include critical information such as the quality of services to render, terms of payments and the responsibilities of each party. The letter might serve as a contract, so make it legally sound.
Most individuals find challenges when writing agreement letters. To mitigate these challenges, rely on a sample or template to make sure you have crafted an effective letter.
Tips for writing an agreement letter
- Make sure the letter includes all the relevant terms and conditions of the agreement
- Both parties must sign the letter
- Use a formal tone when writing the letter
- Include a provision for ending the contract in case any of the parties wants to opt out of the agreement
- You can ask your attorney to review the letter to seal any loopholes
Agreement Letter Format
Subject: Letter of agreement
Dear (Client’s name)
I (Name) write this letter to act as a binding agreement between (Name of your company) and (recipients company/ business name) to offer the following services (indicate the services) for (state the duration).
Based on this agreement, we will pay ($ indicate amount) as an advance payment, and on the 8th day of every month, you will receive ($amount).
Kindly sign a copy of this letter and return one to us if you are in agreement with our terms. We expect you to offer your services from (date).
We expect a quick response.
Sample Agreement Letter/Email
7520 Carothers Street
70210, Urban Lane
Most respected sir/madam
I Jennifer May, the managing director of Pathway Diagnostics enter into an agreement with Clean Options Ltd for the collection of medical waste from our facility at Carothers street for one year.
To initiate the agreement, you will receive a down payment of $ 1500, and monthly fees of $ 850 payable on the 5th of every month. We will credit the payments to your company’s bank account.
Either party can terminate our agreement after serving two months’ notice.
If you agree to our terms and conditions, we ask you to sign both copies of this letter send one to us.
We look forward to a satisfying working relationship.
Types of agreement letter
Agreement letter for payment
- Clear payment terms
- Signatures of both parties
- Services to offer
- Payment date and amount
Financial agreement letter
- Parties involved in the agreement
- What the payment covers
- How to pay and the amount
Project agreement letter
- The scope of the project
- Amount to pay for the services
- Roles and responsibilities of each party
Consulting agreement letter
- Services the consultant will render
- The duration
- A choice of terminating the services by either party