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How to Create an Agreement in Word?

First of all, the basic meaning of an agreement is that it's a situation wherein two or more people have neutral feelings about something. But when it comes to business and formal negotiations, an agreement is a written record of the conditions and settlements that were agreed upon by two parties regarding their business transaction. They can either be called agreement documents or agreement letters. Agreements can take many forms, such as purchase agreements, rental agreements, payment agreements, sales agreements, service agreements, loan agreements, tenancy agreements and many more. It all depends on the subject being negotiated by two parties.

Whatever type of formal document you're creating, whether it's contracts, business plans, business reports, and announcement letters, MS Word is one of the best applications to create them. If you have a computer or laptop with a Windows OS, then you have the privilege to create an agreement in MS Word. With that in mind, we have gathered a few steps in creating an agreement in Word.

1. Use Simple and Readable Fonts

Take note that an agreement document is a formal document. Hence, it should have simple and readable fonts. You can choose any font as long as it has the qualities of being simple and readable. According to, the best fonts with high rates of use-percentage are Times New Roman, Arial, Verdana, and Helvetica.

2. Set the Alignment to Justified

Setting the alignment to justified makes the agreement document look neater and organized once it's finished. This straightens the horizontal alignment of words on both sides of the contents of the contract agreement. Thus avoiding a zigzagged and jagged look.

3. Begin with Basic Information

Now that you've set the necessary MS Word settings for writing a formal document, you can now start writing it. Start with all the needed information of both parties, such as their names, company names, mailing addresses, contact numbers, and other reliable contact information.

4. Comprehensively Convey the Agreement Between Two Parties

When creating an agreement between two parties, work closely with the two parties involved and write down all the terms and conditions and legalities that they agreed upon. Include all the minor details, don't leave out any information. When it comes to agreement documents, it should have absolute completeness to avoid misunderstandings and disputes between the two parties.

5. Cite Some Ground for Agreement Termination.

Whether you are making elaborate business investment agreements or simple payment agreements, if one party breaches or deviates from the conditions being agreed upon in the agreement, an agreement termination should be implemented. There a lot of possible instances that are eligible for agreement termination. But according to some studies, fraud, and failure to comply obligations are the most common grounds for termination. Before writing them in the document, make sure to let both parties know about it.

6. Review Everything

Before printing the document and letting both parties affix their signatures on it, review it first from start to finish. See to it that all the needed details are included. And lastly, make sure that all the statements are relevant to the business agreement.