How to Write a Letter of Agreement. You can write your own letter of agreement for many different reasons. A letter of agreement is a formal agreement between two people or two parties for renting, working, subcontracting, buying or lending money. Depending on why the letter of agreement has been drawn up, you may want to have it notarized. Here are some tips to help you write a letter of agreement.
Make a rough draft of the letter and the points you want to cover in the letter of agreement. Blank letters of agreement are available on the internet, or you can write your own using Microsoft Word or another computer program. A letter of agreement can also be hand written. If you are hand writing the letter of agreement, print the document to make it easier for everyone to read.
Include every point in the letter of agreement, because it's a formal agreement between you and the other party. Include the date of the agreement, the date the agreement takes affect and the date the agreement will be terminated, if needed. Next, write out the names of each party included in the formal agreement. Do not use nicknames or abbreviations. Use the full legal name of each party. You can also add a.k.a. under the legal name, which stands for "also known as."
Write out the terms of the agreement in full. Because it's a formal agreement, spell it out even if you think it isn't necessary. Include the agreed upon price, any money to be paid up front and all job descriptions. Include the expected date of completion and any discounts that will be given or penalties assessed.
Sign and date the formal letter of agreement. All parties involved must sign the formal agreement for it to be valid. If the letter of agreement is for a loan of money, it's best to have the agreement notarized. Make two copies for each party involved.