How to Write an Agreement Letter [Free Samples]

A letters of agreement may be required at some point. These letters are intended to make it easier for two sides to work out a deal. It could be two companies, neighbors, an employer and an employee, or a client and a vendor. The letter is used to specify a few items, such as the job that must be completed and the agreement’s terms.

There are numerous items that must be included in an agreement letter, including:

  • Cost
  • Time Periods
  • Deadlines
  • Schedules
  • Payment

Make an effort to be as specific as possible. If you write a letter that is ambiguous, indefinite, or confusing, the agreement may be called into doubt, and it may be considered invalid. 

Make sure to utilize simple English whenever possible. Some people try to utilize legal language, which can be perplexing and lead to the letter being ignored. 

This type of letter is not intended for complex themes. In reality, it is advisable to have a lawyer prepare a legal agreement if the case involves clauses and multiple technical terminology.

Unforeseen occurrences or contingencies should always be addressed in a paragraph. Because no one can predict the weather or other events in the future, it is critical to ensure that adequate leeway has been included in the agreement. 

For example, if you need a new roof installed on your house and the job is supposed to be completed in two weeks, but it has rained for ten of the fourteen days, a provision of unforeseen circumstances would apply.

In most cases, this letter should contain no more than roughly five items. Always number your points to make it easier to remember them. Every state has its own rules regarding this type of letter, and it is critical to be aware of them before crafting an agreement letter. In court, a letter that is not within the legal restrictions of the state will be dismissed.

Sample 1 - Agreement Letter for payment

Dear Mr. Smith:

Thank you for choosing Gratification Ad Organization to manage your company’s advertising needs by making brochures. I’ll make a set of four professional brochures. I’ll write this advertising copy for you and provide marketing and reporting consulting services as needed to complete the project.

My base charge for the above-mentioned advertising job is $12,000. That fee is only an estimate based on 120 hours of labor at my standard hourly rate of $100. This time will also be used for copywriting, editing, teleconferencing, conferences, consulting, transportation, and research. If my labor does not exceed 120 hours, copy adjustments are included in my base charge.

If this is the case, I will charge $100 per hour for the additional work. All of my out-of-pocket expenses, such as long distance calls, copies, computer printouts, fax costs, courier services, and all travel, will be billed as follows. One-half of the $12,000 base price is due at my start of work; one-fourth is due upon delivery of the initial draft copy; and one-fourth is due at the completion point. Payment is anticipated within ten days of receipt of invoice.

If you agree, please sign and date the letter below. You can email it to me at rita@email.com or fax it to me at 555-123-4567.

Sincerely,

Rita J. Stone

ACCEPTED AND AGREED

By: ___________________________                      Date: __________________

Sample 2 - Agreement Letter for loan

FULL NAME OF PAYEE
FULL NAME OF PROMISOR
DATE OF LOAN
DATE REPAYMENT IS DUE
TOTAL AMOUNT DUE

TERMS OF AGREEMENT:

I, FULL NAME, borrowed $500 from FULL NAME on DATE. We both agreed that the money would be repaid in a series of scheduled payments.

I, FULL NAME, will repay the loan with a personal check in a series of $100 payments every month for five months starting DATE. The payments will be given to FULL NAME on the first of every month beginning with June 1st with the last payment being made on October 1st.

I, FULL NAME, will pay a $5 per day late charge for any payments that are not on time as agreed until the loan is paid in full.

The payee and the promisor agree to the payment agreement terms listed above.

Signed:

Signature of Promisor DATE
Printed full name and address, email address, phone number of promisor

Signature of Payee DATE
Printed full name and address, email address, phone number of payee

Signature of Witness(s) DATE
Printed full name and address, email address, phone number of witness(s)

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