There’s many reason for you to write letter of agreement and it will be good if you learn on how to write one. Agreement letter can be a written list of goods, services or space provided at the agreed prices, terms and time as part business process.
A formal binding contract is form when it was signed by any respective parties after agree on the process of renting, working, subcontracting, buying or services.
Don’t be surprise to find that a letter of agreement can also be hand written.
One advice on writing the agreement letter, do not use nicknames or abbreviations but use the full legal name of each party instead.
All the pricing and terms should end with a signature in the end of the letter as an action of agreement.
The example or sample letter of agreement as below shows the fee, timeline and payment terms of a freelancer who works in contract IT field.
(Company Street Address)
(Company City, State, Zip Code)
The purpose of this letter of agreement is to outline the scope of the IT services that (Freelancer Name) will perform for (Company Name).
(Freelancer Name) agrees to write an accounting system for (Company Name) business usage on a timely basis through existing corporate materials.
(Company Name) will provide the testing and production server and is responsible for post production support of the accounting system.
Services will be performed at the rate of (amount) per hour. I estimate that this project will take between 100 and 140 hours and cost between (start range amount) and (end range amount). If fewer than 100 hours are required, (Company Name) will be charged only for the actual hours (Freelancer Name) works on the project.
The estimated fee outlined above includes the coding of accounting system which was agreed on the design and specification by (Company Name). Hours for additional coding will be billed at the rate of (amount) per hour.
All hours in excess of the estimated project maximum (140 hours) listed in the Fee section must be approved in writing by (Company Name).
(Freelancer Name) will deliver a first prototype system to (Company Name) by (date). The final version of the accounting system will be delivered by (date) with UAT approval by (Company Name).
(Amount) will be paid to (Freelancer Name) within five days after the signing of this letter of agreement.
(Company Name) will be billed for the balance at the end of the project (state a tentative date) and payment in full will be due within 15 days.