When two parties enter into a business agreement, it is important to have a clear and concise document outlining the terms and conditions of the partnership. This document, known as a letter of agreement, serves as a legally binding contract between the two parties and helps avoid any misunderstandings or disputes down the line.
Here is a sample of a letter of agreement between two persons:
[Date]
[Name of Party 1]
[Address]
[City, State ZIP code]
[Name of Party 2]
[Address]
[City, State ZIP code]
Dear [Name of Party 2],
We, [Name of Party 1], and [Name of Party 2], agree to undertake the following project together:
[insert project description]
The terms of this partnership are as follows:
1. Scope of Work: The responsibilities and duties of each party shall be set forth in a separate agreement or statement of work, to be executed prior to the commencement of the project.
2. Timelines: The parties shall agree upon a timeline for completing the project, with mutually acceptable deadlines for major milestones.
3. Compensation: The parties shall agree upon compensation for the services rendered. Payment will be made by [insert payment terms].
4. Confidentiality: The parties agree to maintain confidentiality of all information exchanged during the course of this partnership, unless otherwise agreed upon in writing.
5. Termination: Either party may terminate the agreement upon written notice to the other party. In the event of termination, each party shall be responsible for any costs incurred up to the date of termination.
6. Governing Law: This agreement shall be governed by and construed in accordance with the laws of the state of [insert state].
7. Entire Agreement: This letter of agreement constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.
If the terms and conditions as outlined above are acceptable, please sign below and return a copy of this letter of agreement to both parties.
Sincerely,
[Name of Party 1]
_________________ __________________
[Signature of Party 1] [Signature of Party 2]
[Name of Party 1] [Name of Party 2]
(Printed Name) (Printed Name)
By having a well-written letter of agreement, both parties can be confident that they understand their obligations and the terms that govern this partnership. This document can serve as a valuable reference point throughout the project and help ensure that both parties are satisfied with the outcome.