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Letter of Agreement basics

A Letter of Agreement sets out the terms of a working relationship by including information such as the contact information of both parties, the agreed-upon terms, including payment, when the agreement goes into effect, and when it will end. Outlining the terms of your arrangement through a Letter of Agreement will help you protect your legal rights and know your responsibilities.

How do I write a Letter of Agreement?

Making a Letter of Agreement online is simple. Just answer a few questions and Rocket Lawyer will build your document for you. Consider these questions beforehand to make the process speedier:

  • What issue or matter was the subject of the negotiations?
  • What are the terms the parties have agreed to?
  • When will the agreement become effective?
  • When will this agreement end?

If you don't have all of the details you need, you can skip questions and save your document for later.

What is the difference between a Letter of Agreement and a contract?

A contract is legally binding while a Letter of Agreement is usually non-binding, unless it is signed by both parties.

What are the 4 types of contracts?

There are numerous types of contracts, but four common types of contracts include:

  • Unilateral contracts - Involve an action undertaken by one person or group alone. In contract law, unilateral contracts allow only one person to make a promise or agreement.
  • Bilateral contracts - Unlike unilateral contracts, bilateral contracts involve promises made by both parties.
  • Express contracts - The terms of an express contract are explicitly set out, whether orally or in writing.
  • Implied contracts - The terms of an implied contract, in contrast to an express contract, come about non-verbally and are inferred from the actions of the other party.

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Sample Letter of Agreement

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