In the business world, countless transactions and deals take place among business partners and others. To set out the terms of an agreement and reduce the chance of misunderstandings or even disputes, it’s useful to outline terms and expectations in writing. This is where a letter of agreement may come in.
Wondering how to write a letter of agreement? We cover the details in this article, including when to use one and how you can make the creation process simpler.
What is a letter of agreement?
A letter of agreement “is a simple type of legal contract that, as the name suggests, confirms in writing a verbal agreement made between two or more parties,” says Richard J. Brandenstein, attorney and partner at FBR Law, a firm specializing in workers’ compensation and Social Security disability claims.
“For example,” Brandenstein says, “I, as a business owner, might conclude a letter of agreement with another business owner, whereby they agree to provide a certain service, and I agree to a payment arrangement. Letters of agreement are also sometimes used between creditors and debtors in order for an unsecured creditor to agree that the debt can be settled for less than the full amount.”
A letter of agreement includes vital information about the transaction or deal, such as
- The names of the parties involved
- The contact information of each party
- A description of the purpose of the agreement
- Terms and conditions for the transaction or deal
- A timeline if services are to be performed
- A payment timeline (if applicable)
- A termination date (if applicable)
A letter of agreement may be preferable where the terms of the agreement are simple and straightforward and there’s no need for a more complex contract.
A letter of agreement should specify each party’s obligations and rights regarding the deal. The parties to the agreement should review the agreement before signing it.
How to leverage Jotform for agreement letters
Now that you know a bit more about letters of agreement, it’s time to tell you about Jotform’s agreement templates. Jotform offers 100-plus agreement templates that you can customize to meet your needs. Templates include nondisclosure agreements (NDAs), payment agreements, lease agreements, and many more.
Best of all, with Jotform Sign, you can collect legally binding electronic signatures on your agreement with ease. You can automate and track the entire signing process, even setting the order in which different parties sign. Each party automatically receives a PDF of the completed agreement that’s easy to download, store, or print.
Jotform’s agreement letter templates, along with Jotform Sign, make it easy to complete business deals and minimize risk.
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AS ALWAYS, CONSULT AN ATTORNEY BEFORE RELYING ON ANY FORM CONTRACT OR CONTRACT TEMPLATE. THE CONTENT ABOVE IS FOR INFORMATIONAL PURPOSES ONLY.