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What Is an Agreement Letter?

An agreement letter (also known as a letter of agreement and usually associated with a letter of commitment) is a legal document containing the terms and conditions and settlements that were agreed upon by two parties during their thorough face to face discussions and negotiations. It's basically a contract between two parties summarized in letter form. Agreement letters come in a variety of forms and names, depending on what's being negotiated by the two parties. There are rental agreement letters, property agreement letters, payment agreement letters, employment agreement letters, service agreement letters, and so much more. Here in Template.net pro, we have agreement letter templates and agreement letter samples that might just be what you're looking for.

How to Write An Agreement Letter

how to write an agreement letter

Keep in mind that an agreement letter is a formal document. Therefore, you must follow proper procedures when writing them. With that in mind, we have gathered a few guidelines when writing agreement letters.

1. Use a Reliable Word Processor

A reliable word processor certainly does a lot of good when writing an agreement letter. Why? It's because they have all the right features and tools to write a formal document. Good word processors provide you with formal and readable fonts (e.g. Times New Roman) and enable you to outline your agreement letter formally. Among the best word processors that you should consider using are Google Docs, MS Word, and Pages.

2. Choose an Appropriate Title

At the very top of the letter, you must encode the title of the agreement letter in bold. You should choose a title that suits best with the negotiation of the two parties. If it's about a rental agreement by Mr. Smith and Mr. Johnson, then you can name it "Rental Agreement Between Mr. Smith and Mr. Johnson".

3. Emphasize Dates and Addresses

The dates and addresses must be located on the left-hand margin of the letter. In this way, they're emphasized and will be seen clearly by the readers. Dates and addresses are an important part of any form of business letter, it indicates when and where the letter was written and signed.

4. Elaborate the Terms

This is the most important part of the agreement letter. Hence, you must write about them elaborately and make sure not to miss anything significant. This is most important if the term in concern involves large sums of tangible assets and financial assets.

5. Implement Deadlines

The agreement between two parties might involve the transfer of goods or services that has to be complied with by one party. So to assure that the other party fulfills their obligation, implement a deadline to entice them to deliver as soon as possible. If the goods will be delivered by batches, make a timeline on when each batch is expected to arrive.

6. Review and Proofread

Before printing the agreement letter and letting the two parties affix their signatures on it, review and proofread it first. Check if there are some unintentional typos and grammar discrepancies and then correct them accordingly. And lastly, see to it that everything written on the agreement letter has relevance.

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