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Letter Of Understanding & Agreement

The letters of agreement and understanding are used to make clear working arrangements between two parties. It can be between anyone like a homeowner and a contractor; a consultant and a client; a vendor and a customer; a company department and senior management. In case if the relationship is customer/ vendor, a signed letter is the rule since that serve as a contract between the parties.

  • The letter must underline the fact that the task must be attained
  • The project and its purpose should be properly named and described
  • Make positive notes to the customer for choosing your service.
  • Details like cost, deadline, schedule, and payment terms must be defined in clear terms
  • A ambiguous agreement is not going to help anyone especially the vendor


Letter Of Understanding & Agreement Template

Use our free Letter Of Understanding & Agreement to help you get started. Simply download the .doc or pdf file and customize it. If you need additional help or more examples check out some of the sample letters below.












Date: _____ (Date on Which Letter is Written)












Subject – _______________________(Mention the purpose)

Respected _______(Name)


We are writing this letter to thank you for selecting our web designing services. As per our agreement, our standardized rates for the services given in detail above are ____(mention the cost) with an estimated time of ____(No. of hours) of working. In addition to that for the content services we charge extra hourly rate of ___(mention the rate) that include time for copywriting, editing, teleconferencing, meeting, consulting, travel, and research. If you have any doubts regarding this, please feel free to contact me.

Hope you will get back to me very early


Thanking you.



Name and signature


Download Template (Doc and PDF)

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Letter Of Understanding & Agreement Sample, Email and Example/Format


Respected Sir/Madam,

Dear Mr. Janes:

Thanks for choosing our services of web site designing for your company site. In fact it involves the task which has to be accomplished from the scratch. We should consult you for your ideas regarding the sketch work and let us know your preferences and tastes and demands in this regard.  Let us accomplish with this task for you with the expertise and coordination of all the team including the web designers, content writers, etc. You will get the ideal and the dream site that will be capable of marketing your brand in the most effective manner possible.

Our standardized rates for the services given in detail above $10,000 with an estimated time of 100 hours of working. In addition to that for the content services we charge extra hourly rate of $100 that include time for copywriting, editing, teleconferencing, meeting, consulting, travel, and research. Additional time devoting to the task means we will charge $100 per hour.

And for us there are other expense categories like toll telephone calls, photocopies and computer printouts, fax charges, messengers, and local and out-of-town travel incurred in connection with the project will be send across to you. Please note the sequence of payment. One-third of the base fee upon the commencement of work; one-third upon delivery of first draft copy; and one-third is due upon completion. If you have any doubt regarding the clauses and provisions made out here in the letter of agreement, please feel to contact me. If are satisfied with it, then please sign in the spaces provided as an approval to the agreement letter.

If you are in agreement, please sign and date this letter on the lines provided below. Sincerely,



John Tat


Email Format

This letter would be addressed on a very considerate & courteous way to the ones client to ensure the order placed, or even indirectly confirm the dealings. This would indicate the purpose of drafting, certain clauses to abide with & understanding terms & conditions etc briefed up.

Dear Mr. Narayan;

In relation to the above subject & with reference to your request for cross checking & confirming the agreement entered into to report for the editorial news on a weekly basis as per the afore mentioned terms & conditions laid down. Reviewing over the clauses for news reporting & editing contract as Mr. Niranjan Singh with a group of 5 more members is accepting to undertake the task commencing from 20th Sept’ 2010 on a weekly basis to report to Mr. Akshay Gavde working in the capacity as supervisor for editorial team of Express Group.

Further it is although on experimental basis; your sheer dedication & perfection reflecting from the task performed & also the overall conduct & behavior. Lastly the payment structure completely depends on the ratings for the articles starred within a week’s time from the date of publishing the article. Looking for your positive response & utmost commitment at the earliest.

Yours Sincerely,

Vikas Rahate.


For Express Group.


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