An agreement letter is a legal document between two parties or two people on anything they intend to do or getting into a business deal. It contains all the terms and conditions regarding the agreement. It is needed for renting, becoming a vendor, subcontracting, applying for a loan, lending money, etc. It is an important document as far as the matter of reliability is concerned.
The agreement letter should not be vague in language and content and should state the purpose and details of the agreement completely and precisely. It should specify the conditions agreed upon. Other crucial details the letter must have are the cost, payment terms, effective and finishing date, schedule, and deadline. The details may also depend on the nature of agreement both the parties are getting into. To authenticate it, you must get it signed by a notary. These letters act as a model of communication between the customer, vendors, consultants and clients. They fall under the category of business writing hence should contain no hidden meaning.
Here are some tips on writing an agreement letter.
- It is necessary to note down the points to be discussed in the agreement letter. The number of points may differ according to the type of agreement. Hence, note down all the points without bothering whether they will go with the agreement or not. Since you would be creating a rough draft, making changes is always possible.
- After the rough draft is complete, get it read by someone you trust. Ask him or her if the contents are easy to read and comprehend. You may get a few suggestions from the person as well if he or she has some knowledge of the agreement subject. Before acting on the suggestions, check it yourself if they are relevant and then add it in the letter.
- Don't use any phrases or abbreviated form in the letter. If you want to use the short form of some terms, spell it out at least once at the beginning by enclosing it in a parenthesis. Alternatively, you can add a glossary at the end of the letter and describe the abbreviated words. There should not be any difficulties in receiving the message clearly.
- A valid signature with a date is very important in this letter. All the parities that are involved should sign the letter. Make two copies of it always.
- If you have not drafted an agreement letter anytime before, but are supposed to sign one, read and re-read it before signing. Check for any loopholes and do not sign if you have even a fraction of a doubt. Get the things cleared before the agreement becomes legal.
- Be selective in choosing every word. You should not use flowery language and long sentences should be avoided, unless necessary.
If you are not well versed with the subject matter, get some help from a lawyer or a professional of the relate field.
See more types of agreement letters: