5 Unique Ideas to Make Your Agreement Letter Like a Professional

5 Unique Ideas to Make Your Agreement Letter Like a Professional

People do consider the oral agreements to be legally binding. However, it becomes difficult to enforce their legality in a court of law. That’s why we need to write agreement letters.

Now, you can access ample formats of professional agreement letters. But, if you insist on writing one by yourself, it’s better to follow a few unique tips first.

But, before that, let’s fund out what an agreement letter is?

Agreement Letter-Definition

Two parties who have agreed to work on something together orally make the agreement letters in written format to make it more legally sound. It will help them settle any later disputes. The terms of the agreement, terms of payment, deadline-everything stay mentioned in the agreement letter.

An agreement letter must contain all the detailed descriptions of payment details and the two parties as well. The details of the two parties involved to the date-all are essential details of an agreement letter from the payment ratio to the stakeholder ratio. It must also contain the reason for the agreement, the timelines, the benchmarks, payment information, etc.

Such letters note down the expectations of both the parties and protect both their interests too. Due to the agreement letter, two parties involved in an agreement cannot display any conflict of interest once it is legally bound. That is why not only two individuals who agreed on some terms, but also between employer, and employees, these letters act as legally bound contracts.

Now, let’s note down 5 unique ideas to make your agreement letter like a professional.

Tip 1: Choose a State Law

You must choose a state law to govern your agreement because otherwise, it does not stay legally viable. If both the parties are located in the same state, then choose a law of that state. If both the parties are located in different states, you must pick one state law to govern the contract. If both of you don’t agree on the name of the state, then you can also choose the national laws to govern the agreement.

But, whatever you do, make sure you cross-check the terms of the state law with your partner and align it with your agreement. For example, if both of you are located in different states, and both state laws have the same terms and conditions, then you can mention the name of both those states in your contract.

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Tip 2: A signature block is mandatory

Agreement Letter

Frequently people who write agreement letters mention the name of both parties in the agreement and print the document. It is certainly viable, but you must not forget to include the signature block under the terms of two parties at the end of the agreement.

Also, you can add the phrase ‘understood, and agreed’ above the signature block. It will further highlight that the parties who have signed the contract have understood and agreed on its terms. Thus, it will not leave any scope for either of the parties to deny the terms of the agreement.

Tip 3: Write down the conditions that will end the contract

A letter of aygreement cannot be legally viable for your entire lifetime. It can be, but that must be mentioned in the contract; else, it will be hard to prove its legal soundness in court after a specific period. Not only the date, but if an of the parties miss out on any vital deadline, the contract can also be void.

So, it’s better to write down all the possible conditions that could end the contract. Don’t worry if it looks too lengthy to you. But, it’s better to be safe than sorry, so make the letter of agreement stuffy with all essential details.

Tip 4: Identify the two parties correctly

This might come as a surprise but mentioning the name of the two parties is not enough in an agreement letter. You must identify the two parties correctly. And, that means check out the spelling they write in their names and make sure the names don’t leave any scope to confuse one of the parties with any other person.

Mention the type of the company along with its name, if the letter of agreement is between two companies. If it’s a corporation, then note that. If it’s a sole proprietor or limited liability company, say that as well.

Tip 5: Mention ways to handle conflict

Agreement Letter

This is not necessary for every agreement letter. But, you can mention it to make it look more professional. You can add a section where you will note one or two ways to handle conflict later.

If one of you agrees on arbitration, and the other agrees on going to court, then clarify that before you get it all in writing. The letter of agreement must not contain any information that will raise a conflict of interest.

Sum it up

We have mentioned some unique ideas here that can make your agreement letter look like a professional. After you write it down, make sure to revise it with your partner. Do it in the presence of a lawyer because that will make it more legally sound. You’ll also get a third set of eyes to review the letter and get some new perspective.

Author Bio

Lucia Patterson was born and raised in New York. She is a passionate blogger and also a contributor writer at 7Best Things, Lawyers Note, Gossipment & Get Me Seen. As an admirer of history and art, she keeps traveling around to places that have a story to tell.

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