Sample Agreement Letter

An ‘agreement’ is an oral or written statement of an exchange of promises. It ensures that there is harmony and compatibility in people’s opinions or observations.

An Agreement Letter is written when two or more parties mutually agree on something that is mutually beneficial to all. An Agreement Letter should be drafted with utmost care to ensure that all the important aspects of the agreement have been covered as ‘clauses’ in the agreement. The people who sign an agreement may not necessarily be from the same line of profession or with similar likes/dislikes. However they may still sign up an agreement as business partners or as landlord and tenant, etc.

Since the contents of an Agreement Letter are more legal in nature because they involve more than one party, intervention of a lawyer or a person with a law background is beneficial and makes the agreement less risky. All fine print points should be clearly written in the letter making it totally fool proof and leaving no loopholes.

DOS AND DONT’S OF AGREEMENT LETTER

  • An Agreement Letter should be very carefully and minutely worded leaving no room for any doubt or ambiguity
  • Since lot of details form a part of an Agreement Letter, all the points should preferably be in bullet points or clause form
  • The language used in an Agreement Letter should be simple and easily understandable by one and all
  • The points that need to form a part of an Agreement Letter should be mutually agreed upon by all involved parties to avoid any dispute later
  • The Agreement Letter should preferably be signed by at least one witness from either side to ensure that there has been no partiality
  • The legal person who is involved in drafting the wordings of the Agreement Letter should also sign the letter as proof that s/he is aware of what all has been agreed upon
  • The penalty clause should form a very important part of an Agreement Letter so that either party knows the implications of breaking an agreement
  • All concerned deadlines or dates should be very clearly mentioned in the Agreement Letter
  • An Agreement Letter is normally on a stamp paper of a particular denomination to confirm its legality
  • It is generally not addressed to any one person and is a more generic form of a letter because details of all the parties is mentioned within the letter itself

CONTENTS OF A RENTAL AGREEMENT (since the wordings of a rental agreement are too detailed and legal, just giving the gist of the agreement points and not a sample letter):

  • Name of both parties
  • Date on which agreement has been signed
  • Detailed address of the place being rented out
  • Monthly rental amount agreed upon
  • Date when the rent needs to be paid to the landlord
  • Penalty clause if the rent is paid late
  • Termination clause of the agreement as has been mutually agreed upon (this should be keeping in mind termination from either side)
  • By how much percentage or amount will the rent increase and when
  • It should be signed by both parties
  • Witnesses should also sign confirming that the agreement has been written and signed with mutual consent
  • Validity of the rental agreement

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