A letter of agreement is a letter which clearly states the business deal between two parties. This letter usually consists of conditions on which both parties can agree upon and hence create a deal. A letter of agreement is in other words a negotiation between two parties and can be used for different purposes, though they are mostly official.
These purposes may include drafting employment conditions when a new employee joins the office or for other purposes like that of buying/renting a house or even when there is a dispute between two organisations. A letter of agreement should be written in a formal manner since it is almost always used for official purposes. Aside from that, one must ensure that the letter is written in a brief manner but not superficially so that it is easier to comprehend by the parties. Even though it must be written in a simple language, some legal terms are used. All the terms and conditions should be explained properly in the letter.
Letter Of Agreement Form Writing Tips
- The letter should be in simple language
- The letter should be readable and understandable to both parties involved
- The letter should make clear all the terms and conditions included in the agreement in a direct manner
- The nature of the agreement letter must be mentioned
Letter Of Agreement Form Template
Use our free Letter of Agreement Form to help you get started.
From,
__________
__________
__________
__________
Date: _____ (Date on Which Letter is Written)
To,
__________
__________
__________
__________
Subject – _______________________(Mention the purpose)
Respected _______(Name)
Kindly note that this letter is with regard to rendering the office space under the ownership of the first party (name and address) decision to rent out to the second party (name and address) for a term of ____(mention the duration) for a monthly rent of Rs ____ (amount)per month and an advance payment of Rs ___(mention the amount) which will have to be deposited for the same.
The room rented out to the second party by me as the first party is semi furnished with 2 cupboards, windows, electricity and water connections and certain other essential equipments. In addition to the rent, the second party will have to bear the expenses like the electricity charge, water charge, and other expenses which they must take care of. There are no strict conditions that I have except that the house should be maintained in a neat manner and the house must not be caused much damage.
I am attaching my contact details with this letter, and I hope that I hear from you regarding the offer soon.
Thanking you.
Sincerely,
Name and signature
Sample Letter
From,
Roy M. Turner
4167 Maud Street
Dover, DE 19901
Date: 20th April 2013
To,
Elliott K. Cope
697 Spinnaker Lane
Chicago, IL 60654
Subject – Letter of agreement for renting of house
Respected Mr. Cope,
This contract agreement letter is to rent out my space for the purpose of office use. The initial contract term will be for 11 months and if the respective parties find satisfaction with it, then the agreement will be further extended.
The room is semi furnished with one cupboard, one writing table, 2000 sq feet with two windows with electricity and water connection. It is to write down for your kind information that electricity bill and water bill plus other maintenance charges, you will have to bear as that will not be paid by me. The place must not be damaged and should be maintained properly.
The monthly rent as per the agreement is Rs 30000 per month, and you are expected to pay an advance amount of Rs 1,00,000. Both of us are free to terminate the agreement on the condition that three-month notice should be served to the party concerned. On the other hand, the party concerned can claim compensation of Rs 1,00,000.
If you find the agreement okay, you may sign in the space provided below as a token of approval for the same. Otherwise, I have attached my contact details. Please feel free to contact me.
Thanking you,
Yours sincerely,
Roy Turner
Email Format
A letter of agreement can also be written in an Email format.
From: name@gmail.com
To: name@gmail.com
Subject: A letter of agreement
That in consideration & good faith of the mutual terms and conditions to be adhered to by the above-mentioned parties, M/s. Kumar & Company, aforesaid as the First Party hereby agrees that it shall deal in to provide necessary raw materials, a specialised power man to carry out the below-described task as per the government pact for a period not exceeding two years from the date of the agreement agreed upon.
M/s. Singh & Co, aforesaid as Second Party at this moment covenants and consents that it shall make the pre-decided advance payments as per the said government pact & its clauses.
This agreement shall be binding upon the parties and their successors in the court of Law in the case of any disputes.
IN WITNESS of which these parties have executed this agreement on 3rd Sept’ 2010.
Signed on behalf of. M/s. Kumar & CO
Signed on behalf of M M/s. Singh & CO
__________________ _______________________
In the presence of (witness) In the presence of (witness)
Name:
Name:
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