Agreement Letter Template

The format or template of an agreement letter is prepared in such a manner that it includes basic information about business deal between two parties. The following article presents format of letter of agreement template through the given example...
Agreement letters are documents used to make sure that parties engaged in a business deal agree upon terms and conditions communicated to each other. A letter of agreement acts as a mode of communication between customers & vendors, consultants & clients, and is one of the important forms of business writing. It is therefore, important to give the clear idea to the reader as to what is expected from him in terms of the agreement to signed in the future. It has been observed (assuming you and your client have not prepared & signed an agreement letter) that negotiation becomes a bit difficult when you are halfway through your project. Not all demands (no matter how crucial they are) can be met after a certain plan has been prepared for the completion of work. Last minute changes can affect the quality of work to a great extent. The agreement letter therefore, acts as a preventive measure against the occurrence of potential problems and hassles. Let us find more about writing business letters like these.

Letter of Agreement Template
An agreement letter incorporates the points that identify the work to be done, describes it properly, and provides information related to these points: cost, schedule, deadline, terms of payment, etc. The information has to be presented in a concise manner that should be to the point. Any kind of ambiguity would cause doubts in the mind of readers and hamper the possibility of the deal being a success. A separate list can be prepared in the template of agreement letter if there are more number of products or items.

A lawyer can be hired if the letter contains too many clauses, terms & conditions, i.e. if the letter becomes too formal. Feedback of the client should be obtained to see whether any changes in the agreement letter need to be made. After making necessary changes, the agreement letter should be submitted to the client. Two copies of the letter need to prepared; these copies should then be signed by the client and one of these returned for the service provider's record.

Agreement Letter Example
The following agreement letter example should provide readers with a rough idea of how to draft/write these letters. The agreement letter template contains a letter to the client to intimate him/her about terms and conditions of the deal, payments and other related information.

Agreement Letter Template
18th December, 2009
5 Mandela Drive
Buffelsfontein
5029

Subject: Letter of Agreement - Preparation of Brochures

Dear Mr. Brown,
Thank you for choosing our advertising agency and delegating the task #1123 to us. The task #1123, which includes preparation of brochures would require services like marketing and consulting, as per the necessity of the job to be completed. Around 100 working hours would go into the completion of this task. As per the hourly fee of $70, the base fee would account for $7000. Services provided in exchange of base fees include copywriting, editing, meeting, teleconferencing, travel, consulting and research. The task of copy revisions would be included in the base fees, however, any additional time needed for completion of work would be subject to extra fees as per the rate of $70 per hour.

The bills of out-of-pocket expenses would be delivered to you. The expenses can be those associated with computer printouts, photocopies, toll telephone calls, fax charges, travel expenses, etc. The payments should be made in 3 installments i.e. 1st after commencement of work, 2nd after the first draft is delivered, and final after the work gets completed. Payments should be made within 10 days of the receipt of invoice.

If you agree upon the terms and conditions mentioned above, please sign the letter and fax it on the xxx-xxx-xxxx number.


Sincerely,
Michael Jones

ACCEPTED AND AGREED

Date:
By:

The letter of agreement has to be concise and it must provide the necessary information in a compact layout or format. The agreement letter template above, presents a general format of such letters. Agreement letter samples may change slightly, depending on the volume of information to be conveyed to the client. Otherwise the basic format doesn't change. Those looking to draft an agreement letter template can use the above example as a reference to assist them in their task.
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Last Updated: 9/12/2011
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