13+ Sample Letter of Agreement Examples – PDF, Word

Letters of agreement are important before engaging into a business relationship. These are necessary to make sure that all the members of both parties are agreeing on the same things. Also, simple letters of agreement are helpful in outlining the respective responsibilities of everyone involved, which means that they can protect the legal rights of those affiliated by keeping everyone in line with what the agreement entails. Through this, everyone can focus in doing the work they love without having to worry if everyone else is doing their part.

Aside from outlining responsibilities, letters of agreement also enumerate conditions. It is most obliging to employer-employee relationships and independent contractors who are giving services to a bigger company since they will have a clearer view of the roles they are to serve. It is important that the letter of agreement include as much information about the job to be done as much as possible. Even the tiniest detail should be covered to be able to protect those under the agreement to the fullest extent.

The payment, the job responsibilities, and the service quality are only a few of the things that should be clearly indicated on the agreement.

To be legally binding, letters of agreement should be signed by both parties involved. It should also be signed by the witness who watched the proceeding take place. Letters of agreement can also serve as a contract since they lay out the terms of a professional relationship. To achieve this, the general agreement should include the contact information of both parties, the state laws they will follow, the payment, and the duration of the agreement.

Letter of Agreement Master Professional Services Agreement Example

Confirmation of Purchase Agreement Letter Example

Letter of Agreement Template

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Contracts are for business agreements that involve multi layers of intricate discussions. Even for common routine business transactions, contracts are still the only reliable document to assure a safety settlement where you will not be held at a disadvantage. Contracts and agreements both lay out the specifics of a job or responsibility. However, contracts, as a rule, have more a rigid outline.

General contracts also hold the promises both parties make to each other while an agreement is simply a document wherein one party has accepted the offer of another. Aside from these differences, both contracts and letters of agreement play the same role. They save you from unnecessary costs and hassle that come with legal action because you know your rights and obligations as written on the legal document.

Types of Letter of Agreement

Quitclaim Deed Letter.

This is a letter written by a person owning a property who wants to transfer his rights to it to someone else. There are three common types of property transfer:

1. Transfer a home to another person.

The most common form of property transfer is that which happens between parents and their child, or a couple after divorce. For these situations, a quitclaim letter is necessary to erase the rights of the original owner to the property so that it can be transferred to someone else. You may also see business agreement letter examples.

2. Transfer a home to a living trust.

Will and testaments are a guarantee that the riches you have accumulated on earth will be passed on to people you can trust them with. By transferring your home or any other property to a living trust, you can have the rights to them while you are alive only to relinquish that right after death. Usually, an attorney will foresee these proceedings to make sure that the names on your will and testament will receive the properties you give to them. You may also like agreement letter for payment examples.

However, without the presence of a legal professional, this can still be accomplished by issuing a warranty deed.

3. Transfer a home to an LLC.

This is most useful for people who are only renting their homes, or for those who regularly have visitors. To make sure that you will not be held responsible if your guests acquire injuries while being in the confines of your home, you can transfer the house to a limited liability company.

Summons and Complaint Letter.

This formal letter is a serious issue that needs attention since these are two documents that can start a lawsuit. The purpose of this document is to notify the defendant that a lawsuit is filed against him. The defendant’s response to this letter would be his defense against the claims against him.

Pending Payment Complaint Letter.

It often happens that, in a business, debtors need a lot of pushing before they pay their dues. If you have already sent out a few letters reminding the client about his existing balance without receiving any response from him, it is safe to assume that the party concerned may simply be held at a disadvantage at the moment.

However, if the debt has lasted longer than agreed on, a pending payment complaint letter can send your client the message that if he doesn’t settle his accounts soon, there will already be consequences. Now, these outcomes usually differ from company to company, but the worst that can happen to the client is either to have his account closed, to have the purchased goods repossessed, or for legal action to be sought by the creditor.

Letter of Agreement between Participant and Manager

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Letter of Agreement and Addendum

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Photography Agreement Example

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Differences between a Contract and a Letter of Agreement

Generally, letters of agreement are more preferable in less formal settings. If you and your business partner simply want a tangible proof for your agreement and not a lengthy, complicated document (often called a contract), a letter of agreement is a safe and less complex document for you. Even if they are less formal than simple contracts, they are still more reliable than a simple handshake and a vague word of mouth since putting things into writing is still effective especially for parties who are engaging in a business transaction for the first time.

Loan Agreement Letter.

This letter is basically a contract created by two parties, the borrower and the lender, wherein they list down mutual promises. These also serve as documentation of the details that both parties mutually agree on. Before a loan agreement letter is drafted, the borrower first has to prove his capacity to pay the amount he is asking from the lender. You may also see rental agreement letter examples.

He may show proof of his investments or his income, his trustworthiness, and his character, which the lender can consider before he chooses to give the amount asked. There are two types of loans:

1. Bilateral Loan.

A bilateral loan is less complicated since most of the terms of debt is decided on by the lender, yet more risky since only one person is going to combine all efforts to provide a debtor a loan. In the case of a bilateral loan, there is only an individual lender catering to more than a handful of borrowers. The amounts that a debtor can borrow on a bilateral loan is smaller in comparison to the syndicated loan, which makes it perfect for families or startup businesses.

2. Syndicated Loan.

The term syndicate is used to describe the group of people who are working together to provide loans to people. These usually come in the form of bank facilities. In syndicated loans, the debtors are usually big corporations or companies wanting to loan big amounts of money. So the process is more complicated since both parties are dealing with a considerable amount. You may also see notice letter examples.

Also, the syndicates will need investors to provide the money, which means that there are more than a few people involved in the business.

Two Primary Categories of Loan Agreement

1. Term Loan.

A term loan is that which is paid regularly for a set amount of time. The loan could last as long as 30 years, depending on the amount and the simple agreement between the lender and the borrower. There is also an unfixed interest rate that will only add to the amount to be repaid the longer it remains to be unpaid. This type of loan agreement is popular in installment house or car purchase.

2. Revolving Loan.

A revolving loan is a more flexible type. It allows the debtor to withdraw and repay, and repeat the cycle as many times as he wants. Unlike term loans, revolving loans don’t have to be paid on a specific amount of time since the debtor can redraw the contract when he wants. A common example of this is the credit card. You may also check out application letter examples & samples.

Quitclaim Deed Letter Example

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Summons and Complaint Letter 

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Pending Payment Complaint Letter Example

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Termination of Lease Agreement.

The termination of a lease agreement is also influenced by the state and federal laws to which both parties are subjected to. But in most states, the landlord is given the power to end a rental agreement if the tenant fails to pay the rent, violates a clause mentioned in the rental agreement he has signed, or violates a federal law. However, before the landlord evicts the tenant from his residence, he must first give him a notice of termination that tells the tenant to do any of the following:

1. Pay rent or leave the residence.

A notice of termination of this form is sent for tenants who have not paid their few months worth of rent. This notice will tell the tenant to pay his debts, usually within five days depending on the landlord, or he will have to vacate the place.

2. Cure or leave the residence.

If the tenant has violated any of the rules that he and the landlord has agreed upon on his rental agreement, he will be sent a notice to either correct the mishap or leave.

3. Unconditional vacation.

If the tenant has participated or orchestrated a grave act that has violated any of the laws of the state or the country, usually the only option that they will be left with is to leave the place without being given the chance to correct the mistake he has committed or to pay the rent. You may also see business reference letter examples.

Sale Agreement Letter.

This is usually necessary in transactions to enable the buyer and the seller to specify their terms in writing. It enlists the terms of payments that will be used and it can also provide warranty for each item purchased. It includes specifications of the products or services purchased and the quantity per item. Aside from that, sales agreement letters contain the contact information of the buyer and the seller and delivery details. The letter can also include a detailed description of the terms with which both parties will settle liabilities and disputes that may happen in the future.

Settlement Agreement Letter.

As an employer, this professional letter can protect you from future claims that may be made against you. It contains an agreement that waives your employee’s rights to seek for an employee tribunal, which will be costly on your part, if ever he makes claims against you. Instead, the grievance will be discussed formally and privately between you and the concerned party.

However, when signing a settlement agreement letter, your employee should have an independent legal support and should be fully knowledgeable of what signing this document will entail. This agreement can be used by the employer when the employee wants to settle claims regarding his dismissal, a basic agreement needs to be arranged regarding an employee leaving the company and him yielding the claims he has made, and issues that have arisen before an employee left the company needs to be resolved.

Rental Agreement Letter.

This standard agreement should be drafted and discussed between a landlord and a tenant before the tenant starts to occupy the designated space. A rental agreement is not a long-term contract. In fact, it needs to be renewed every additional month that the tenant is willing to spend in the building. The landlord also holds the right to change the terms of the tenant’s stay. He can even raise the rent or evict the tenant for no reason at all. However, a month long notice should be given to the tenant before the landlord forces him to leave his establishment.

Loan Agreement Letter Example

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Termination of Lease Agreement Example

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Sale Agreement Letter Example

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Party Wall Agreement Letter.

A party wall agreement is an accord that will protect you from unwanted damages that may befall your property. This is an agreement issued between neighbors who share the same property or whose properties overlap. This is also applicable for when you and your neighbor agree to make changes or renovations on the property. You may also see business proposal letter examples.

A party wall agreement letter will encompass all the envisioned work that needs to be done and the cost that will come along with it. A party wall agreement can be used in these situations:

1. When you need to do renovations or work on a part of the property that you share with your neighbor;

2. When you and a neighbor agree on renovations on the shared property;

3. When you need to do works on commodities or structures you share with your neighbor and which they will be directly affected such as chimneys and sewers; and

4. After the details of the works done have been agreed between you and your neighbor, a party wall agreement can solidify the deal and its details. You may also like appointment letter examples & samples.

Content Suggestions in Writing a Letter of Agreement

There are no rules set in stone on how to write your letter of agreement. However, there are a few areas that you should absolutely cover such as the following:

1. The nature of the project.

One of the most important aspects of an agreement letter is the specification of the tasks that one or both parties are entitled to perform.

2. Project costs.

The agreement should include how much the project will cost. However, for contracted workers, project costs are made up of the amount that the employer owes them. The salary is usually calculated through the amount of hours that the employee will render. But there are also certain cases wherein a specific amount will be paid for every hour that the employee works. This aspect of the agreement should be agreed upon by both parties. You may also see acknowledgement letter examples & samples.

3. Timeline.

The specific dates of starting and ending should be included in the agreement to give both parties an idea on how long to wait for the project to be finished.

4. Terms of payment.

Usually, for payments, the client will pay the employee half of the promised salary. The rest will be given fifteen to thirty days after the project is done. But this can alter depending on the terms that the parties decide on.

5. Other considerations.

For other issues such as intellectual property rights especially when dealing with freelance artists, it is best to consult an attorney.

6. Don’t use too difficult language.

An agreement letter doesn’t have to be unnecessarily eloquent to be considered formal. Use simple terms to convey your message. Also, it is important to avoid using jargon, legal or otherwise. It will only make your document difficult to understand for both parties, and what is the point of an agreement letter if it’s incomprehensible? You may also like business formal letter examples.

7. Talk about unexpected contingencies.

There will be unforeseen additional expenses that you will have to face in the duration of your project. Your agreement should include the party responsible for these contingencies. In most cases, they are taken care of by the employer. However, there are different forms of business relationships that may require different descriptions. It is up to you and who you are working with to discuss this particular detail. You may also check out how to write an official letter.

Just make sure that your agreement is not biased toward the other party so that you won’t see yourself having to pay for expenses you shouldn’t be the one responsible for.

8. Specify which state laws your agreement will fall under.

If you and your business partner come from different states, your agreement can give details on which state laws you are going to follow. This aspect is important in situations wherein the court of law is needed to interfere should there be unwanted circumstances needing legal attention.

Settlement Agreement Letter Example

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Rental Agreement Letter Example

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Party Wall Agreement Letter Example

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Tips in Writing an Effective Letter of Agreement

Drafting an agreement letter is important and crucial since it is the initial foundation on which your business transaction will be built. Here are a few tips that you should rigorously follow to make sure your letter sends out the right message:

1. Be knowledgeable of the clauses that you need to discuss on your letter. The discussion does not have to be perfectly thorough since the rest of the details can be discussed face-to-face. However, it is important that your client gets a general understanding of your content. Knowing the appropriate clauses to include will also assure that your letter is well founded. You may also see job appointment letter examples.

2. Do not be vague in your letter. You cannot simply say, for example, that “future contingencies will be covered” because that general statement doesn’t give a clear view of the person who will be responsible for such discrepancy. An unclear statement such as this may lead to problems arising in the future. As much as possible, divulge all the details of the agreement to make sure that both parties are protected.

3. The purpose of the agreement letter or the project or job proposed should be clearly stated on the letter.

4. Pick a title for the business venture you are about to engage in. Your title should simply reflect the nature of the transaction that is about to happen. Although conciseness is a goal for your title, do not be overly specific. Your contract should be easy to identify among all the other contracts involved in the same transaction or to be retrieved for a similar transaction in the future. You may also see thank-you letter examples.

5. The duties and rights of the members of both parties should be carefully enumerated. The most important part of a partnership is for everyone involved to be aware of the shoes they are expected to fill. After all, this is why a collaboration is happening. By informing both parties of their duties, future disagreements due to expectations not being met can be avoided. You may also like reference letter examples.

6. Both parties should sign the letter of agreement so it would be deemed legal.

7. If you are still having difficulty in creating an agreement letter, seek for professional assistance to help you.

How Does a Letter of Agreement Work?

A letter of agreement is drafted when one party has an offer to be made to another party. This intention will be expressed through the letter. An offer is an expression of a party’s willingness to be involved in a transaction with a person or with a group of people. Naturally, the offer will also hold its own terms and conditions, details which should be contained on the formal letter.

The next aspect of a letter of agreement is the other party’s acceptance of the offer. However, there can also be instances wherein the offer will not be accepted but changed or altered to the specifications of the party being offered. In this case, the offer is considered rejected to give way to a counteroffer, which is now drafted by the party who was initially offered. You may also see how to write a personal letter with examples.

The acceptance should be made clear for both parties. A lack of response is not an acceptance. If the acceptance is sent through mail, the offer begins to take effect once the mail is sent. However, for more instantaneous responses such as in the form of text messages or formal emails, the offer will take effect once the receiver reads the message. The acceptance can be expressed verbally or through the written word.

Once an offer has been made and an acceptance has been expressed, both parties should agree to make the agreement legally binding. In most transactions, this is already agreed upon even before the offeree accepts the proposal.

Entering into a legally binding agreement with another party has a few qualifications. The first of which is that none of the parties involved should be children or anyone who is still considered underage. Those who are mentally incapable, whether because of a mental illness or drug use, should be countermanded.

When entering into a contract with a company or a corporation, on the other hand, the document should be signed by a person of authority. Usually, directors and senior managers are given the power but it can be different depending on the corporation and the type of basic contract. If you are the offeror, make sure that the person signing your agreement has the right to do so. Otherwise, your document will be deemed null.

Seals are also unnecessary to make a contract legally binding. However, if you wish to include one to make your document a sense of finality and formality, you can. Seals also give the validation that the person signing has the authority since he obviously has access to a seal.


Being in the business world is tricky. No matter how small your corporation is, it is still a big part of your life that you are investing on it.

To make sure that, at the end of every transaction, no matter how small it may seem to you at the moment, you will not be left in tears with the fate of your business crumbling before your own eyes, have a written document to provide proof, information, and security to you and your business. As they all say, a pound of cure is nothing to a spoon of care. You may also see letter format examples.

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