How to Write an Agreement Letter

This article was co-authored by Clinton M. Sandvick, JD, PhD. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013.

This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources.

This article has been viewed 184,163 times.

Agreement letters can be written for a variety of purposes. One common reason people need agreement letters is when they have orally agreed to perform work for someone and want a written agreement of the terms. There is no one way to write an agreement letter. However, you should include basic information such as the nature of the agreement, deadlines, and terms of payment.

Part 1 of 3:

Reaching an Agreement

Step 1 Talk with the other party.

Step 2 Negotiate.

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Step 3 Outline the letter.

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Drafting the Agreement Letter

Step 1 Open a word processing document.

Step 2 Title the letter.

Title the letter. At the very top of the page, you should place the words “Letter of Agreement” in bold. Center the text. [4] X Research source

Step 3 Include the date and addresses.

Step 4 Explain the letter’s purpose.

Explain the letter’s purpose. In the first paragraph, you should state why you are writing the agreement letter. [6] X Research source For example, you could write, “The purpose of this agreement letter is to outline the requirements for the wedding reception Madelyn Smith will organize for me, June 12, 2016.”

Step 5 Define the work to be performed.

Step 6 Identify benchmarks and timelines.

Step 7 Agree on revisions.

Step 8 Include payment information.

Step 9 Clarify how long the agreement is in force.

Step 10 State the governing law.

Step 11 Add a non-disclosure provision, if necessary.

Step 12 State the letter contains the entire agreement.

Step 13 Include a signature block.

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Finalizing the Letter

Step 1 Send a rough draft to the other party.

Step 2 Sign the letter.

Sign the letter. Once you come to an agreement, print off the letter and sign it, using black ink. Add the date. Keep a copy of the letter for your records.

Step 3 Ask for the other party’s signature.

Step 4 Store your copy safely.

Store your copy safely. When you get the signed letter returned, be sure to store it safely where it won’t be damaged. You may need to rely on the agreement letter should a dispute arise between you and the other party. The letter could serve as evidence in a lawsuit, for example.

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Think about meeting with a lawyer to draft a proper contract. Don’t think that because the agreement is in letter form that it doesn’t bind you to the agreement the way a contract would. An agreement letter may be more informal than a contract, but it is a legally-binding agreement just the same. If you are unsure about whether to sign an agreement letter, meet with a lawyer.

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  1. ↑https://www.forbes.com/sites/martinrand/2021/05/26/how-to-negotiate-effectively/
  2. ↑https://www.iup.edu/writingcenter/writing-resources/organization-and-structure/creating-an-outline.html
  3. ↑https://owl.purdue.edu/owl/subject_specific_writing/professional_technical_writing/basic_business_letters/index.html
  4. ↑https://www.indeed.com/career-advice/career-development/letter-of-agreement
  5. ↑https://writing.wisc.edu/Handbook/BusinessLetter.html
  6. ↑https://www.indeed.com/career-advice/career-development/letter-of-agreement
  7. ↑https://www.indeed.com/career-advice/career-development/letter-of-agreement
  8. ↑https://www.indeed.com/career-advice/career-development/letter-of-agreement
  9. ↑https://www.loc.gov/static/programs/national-recording-preservation-plan/tools-and-resources/documents/Agreement-Purchase-MBRS-project.pdf

About This Article

Co-authored by:

This article was co-authored by Clinton M. Sandvick, JD, PhD. Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. This article has been viewed 184,163 times.

74 votes - 81% Co-authors: 6 Updated: July 3, 2023 Views: 184,163 Categories: Legal Writing

To write an agreement letter, start by titling your document "Letter of Agreement" in bold, centered text, then add your address, the date, and the other party's address. After a salutation like, "Dear Ms. Jones," explain the purpose of your letter and follow that with a detailed outline of the tasks to be performed, including important deadlines. Also, make sure to mention how much you'll be paid, when you'll be paid, and how long the agreement will be in effect. In case there is a dispute later, be sure to include a cancellation clause and state which laws govern the letter by writing something like, "This Agreement will be governed by the law of the state of Texas." Finally, state that the letter contains the entire agreement and sign it to make it official. For more tips from our Legal co-author, like how to finalize your agreement letter, read on!

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Reader Success Stories

Elizabeth Schwab Dec 2, 2019

"I had no idea what to do for an agreement letter. This is extremely helpful. I feel so much better about the situation." . " more