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Agreement Letter Template

Agreement Letter Template

An agreement letter is drafted in such a manner that it incorporates basic information about business deals between two parties. The following agreement letter template should give you a basic idea of how to write such letters.
Penlighten Staff
Last Updated: Apr 28, 2018
Agreement letters are documents drafted to make sure the parties engaged in a business deal agree upon the terms and conditions communicated to each other. Letter of agreement acts as a mode of communication between customers & vendors, consultants & clients, etc. Thus, it is one of the important forms of business writing.

It is important to give a clear idea to the reader as to what is expected from him with respect to the agreement to be signed in the future. It is observed (assuming that you and your client have not prepared & signed an agreement letter) that negotiating becomes a bit difficult when you are halfway through your project. Not all demands (no matter how important they are) can be met after a certain plan has been prepared for the completion of work. Moreover, last minute changes can affect the quality of work to a great extent. Therefore, an agreement letter acts as a preventive measure against occurrence of such problems.

Letter of Agreement Template
[Sender's Name]
[Address]

[Date]

[Recipient's Name]
[Subject:]
[Company Name]
[Address]

Dear [Recipient's name],

This document is an agreement between [Name of Sender's Organization] and [Recipient's Name]. The [Recipient's Name] will provide following services [Describe the Services], on [Date], at [Time] at: [Location]

Detailed Address:

[Recipient's Name] is being sponsored by the [Sender's Organization's Name] and will be paid for services provided in the amount of _ _ _. Payment will be made upon completion of services. Please sign both copies of this agreement. Keep one for your records and return the other to the address mentioned above.

Regards,

_ _ _
Signature

ACCEPTED AND AGREED

_ _ _
Recipient's Signature

Writing a Letter of Agreement
An agreement letter incorporates points which identify the work to be done, describes the points properly and provides information relevant to them: cost, schedule, deadline, terms of payment, etc.
  • The information should be presented in a concise manner. Any kind of ambiguity would raise doubts in the mind of reader and hamper the possibility of the deal being a success. In fact, the vendor, in most cases, has to bear the problems resulting from such ambiguity.
  • A separate list can be prepared in the template of the agreement letter if the given products or items are greater in number.Creating a numbered list makes it easier to refer to a particular point in the letter.
  • A lawyer can be hired if the letter contains too many clauses, terms & conditions, i.e. if it becomes too formal.
  • Feedback of the client must be obtained to see whether any changes in the agreement letter are required to be made. After making the necessary changes, the agreement letter should be submitted to the client. Two copies of the letter need to prepared; both the copies should be signed by the client and one of them returned for the service provider's records.
  • As far as possible avoid using legalese while writing the agreement letter. A letter written in simple English allows to understand the terms and conditions in a better manner.
  • Thank your reader/client for choosing your services. It is better to ask your attorney to review the letter before you send it to the client/customer.
  • A letter of agreement should be concise; however, all the terms and conditions need to be presented clearly. Sometimes, the project may get delayed; your letter should discuss all such possibilities beforehand, even if it becomes lengthy; you need to be absolutely clear about the terms and conditions.

The letter of agreement should be concise and it must present the necessary details in a compact format. The template given above presents a general format of the agreement letter. The agreement letter template may vary, depending on the volume of information to be conveyed to the client. Otherwise the basic format remains the same.