Oral contracts are usually enforceable; however, drafting a letter of agreement increases the contract’s legitimacy. A legitimate letter of agreement is equivalent to a contract.When Should a Letter of Agreement Be Used?When you require a legal agreement, for example, templates for regular agreements, including customer contracts, leases, non-compete agreements, and employment agreements, are usually easy to locate online.In certain circumstances, you’ll need to document an agreement that doesn’t fit into the existing forms. This is where a letter of agreement, also known as a memorandum of understanding (MOU), may help. This is the most basic sort of contract, and it consists of an offer, consideration, and acceptance.
How to Write a Letter of Agreement ?
A basic agreement on standard letterhead signed by any party can be used as a letter of agreement . The letter is usually written by the person that is making the offer. This also gives you authority over the agreement’s terms, as long as the common understanding is reflected.An MOU framework, which is written like an ordinary contract, can also be used. You’ll provide the parties’ names, dates, and contact information. Each party will sign and date the paper at the conclusion.List the major aspects of the agreement in the body of the letter and offer precise, detailed information if available. This should include things for sale, rental space, and services for hire.An MOU should be as brief as possible, but it should include provisions for jurisdiction, attorney fees and expenses, modifications, choice of law, waiver of jury trial, assignments, notifications, and/or counterparts, among other things.
