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Letter of agreement

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  • 1. LetterofAgreementKate S. MagpocShaira Kaye Latade
  • 2.  Written listof goods, services, or space to beprovided at the agreed-to prices, terms and time. Itbecomes a binding contract whensigned by the associated parties.
  • 3. -An agreement, in writing between two ormore individuals or entities inwhich a court canimpose penalties in the eventone party attempts to negate onhis or her promise as set forth inthe signed document.Binding Contract
  • 4. Sample: Letterof Agreement
  • 5. Letters of AgreementMarch 1, 2007Mr. Steve SmitheePresidentSmithee & Company1010 Main StreetKansas City, Missouri 64105Dear Mr. Smithee:The purpose of this letter of agreement is tooutline the scope of the writing services that[FREELANCER NAME] will perform for Smithee& Company.Services to Be Rendered[FREELANCER NAME] agrees to write a four-page brochure describing the engineeringservices of Smithee & Company. Informationfor the brochure will be provided, on a timelybasis, through existing corporate materials aswell as through interviews with Steve Smitheeand other appropriate Smithee & Companystaff.Smithee & Company 1) will provide allphotos, charts and other graphics to beincluded in the brochure, and 2) is responsiblefor printing and other production costs relatedto the brochure.FeeServices will be performed at the rate of $60per hour. I estimate that this project will takebetween 25 and 40 hours and cost between$1,500 and $2,400. If fewer than 25 hours arerequired, Smithee & Company will be chargedonly for the actual hours [FREELANCER NAME]works on the project.Additional CostsThe estimated fee outlined above includes afirst draft and one edit of the four-pagebrochure. Hours for additional edits and/or alonger brochure will be billed at the rate of $60an hour.All hours in excess of the estimated projectmaximum (40 hours) listed in the Fee sectionmust be approved in writing by Smithee &Company.
  • 6. Timeline[FREELANCER NAME] will deliver afirst draft of the brochure to Smithee& Company by Wednesday, March26. The final edited version(including hard copy and a computerdisk in Word) will be delivered byMonday, April 2, as long as Smithee& Company staff members areavailable on a timely basis to discusschanges to the original.Terms of Payment$750 will be paid to [FREELANCERNAME] within five days after thesigning of this letter of agreement.Smithee & Company will be billed forthe balance at the end of the project(tentatively April 2) and payment infull will be due within 15 days.Sincerely,Freelancer NameFreelancer AddressCity, State & Zip CodePhone NumberJohn SmitheeSmithee & CompanyDate
  • 7. Your Agreement should include information like:the contact information of both parties;the state whose laws will govern the agreement;the subject and dates of any previousnegotiations;the agreed-upon terms, including payment;when the agreement goes into effect;and when it will end.With a Letter of Agreement in place, youll knowwhat to expect —and whats expected of you.
  • 8. Parts of Letter ofAgreement
  • 9. 20 October 20005 Mandela DriveBuffelsfontein5029Letter of AgreementThe letter of agreementbegins like most businessletters, so be sure toinclude the date and theaddress of the personyou’re writing to.Subject: Letter of Agreement – LA-5907-451-PEOReference: South Africa Field Support 59000.07.451Don’t worry about these long and complicatednumbers. All you need to do is include thesubject of the letter and your reference numberTo make your office administration easier.Dear FeliciaI. Scope of Work: Under this agreement with TheFutures Group International, Inc. (FUTURES),the POLICY Project, Project Amandla shall:Provide assistance to organisations to help them in theadministration of their small grant plan, on behalf of thePOLICY Project.You will be expected to oversee and provide guidanceand support to the organisation in the following areas:1. Assist the NGO to keep records of its activities.2. Assist the NGO to compile regular reports of its activities.3. Assist the NGO to keep financial records.4. Identify areas that require further administrativedevelopment within the organisation.Scope of Work (also referred to as SOW)describes the job in more detail and laysout the roles and responsibilities of theperson performing the job. Here you candescribe briefly what you want from thementor. It’s a good idea to use bullets tolist the tasks – this way it’s easier foreverybody to see what you want themto do.
  • 10. Time period:The programme runs over a 10-month period, from the datethe first small grant payment was made. During this periodyou will be required to plan 10 to 15 days of mentoring timeengaging with the NGO as specified in Scope of Work.State clearly how long the project will runfor – and how many days the mentor needsto work for.Reporting requirements:• Furnish the POLICY Project with a bi-monthly (every two months) reportrecording activities and a description of your assistance to the organizationand how this has impacted on and assisted the work of the organization.• Maintain contact with the POLICY Project and notify the POLICY Projectof concerns that are of a serious nature and cannot be left until thefollowing report.How often do you want to hear from thementor? Once a month? Every two months?How many written reports do you expect fromthem? Do you want to hear from the mentor inthe case of an emergency? If so, let them knowin this letter.II. Period of Performance:A 10-month period from the date the first small grant payment was received by the NGO.III. Method of Payment:A sum of RXX.XX will be paid per day in South African rand for this service.Be sure to include how much you’llpay the mentor per day.
  • 11. In addition, you may be reimbursed for other official costsincurred under this letter of agreement. In order to bereimbursed, you will need to keep an accurate record of thefollowing costs:1. Mileage will be paid only for the costs of travellingto and returning from the NGO. The POLICY Projectwill reimburse you RXX.XX (phone the AA and findout what the rate per km is) per km and willreimburse you on receipt of the Mileage Log Sheet.Are you going to pay the mentor’s expenses?You need to make sure that your budget is ableto cover these costs in addition tothe salary you’re paying.Remember that mileage costschange and tend to go up eachyear. To ensure that you’re payinga reasonable rate, phone the AA(Automobile Association) forupdated prices.2. Telephone calls: The cost of telephone calls to the NGO and to the POLICY Project willbe reimbursed, and payment will be made on receipt of the Telephone Record.We’ve provided you with a telephone record toensure that each mentor keeps accurate recordsof who they have phoned and when3. Accommodation may be paid for by the POLICY Project; however, it must be pre-approved andcan only be paid for following the completion and approval of the Request for AccommodationForm.A maximum of RXX.XX (not to exceed the equivalent of US$XX.XX) will be paid for the services andall reimbursable items under this agreement.It’s important to put a ceiling on theamount of expenses you are willingto pay.
  • 12. Payment shall be made on a bi-monthly basis, uponreceipt of the required bi-monthly reports.Please submit an invoice to the POLICY Project/SouthAfrica office for payment.Write down how often mentorswill be paid.IV. Technical Directions:Performance of the work hereunder shall be subject to technical directions by MsJoyce Nhlapo, the POLICY Project/South Africa staff member.If you have any questions, please do not hesitate to contact Ms Joyce Nhlapo at (021) 4620380.The POLICY Project Project AmandlaBy:............................................................. By Accepted: Accepted.............................................................................Name: Joyce Nhlapo Name: Felicia GasaTitle: Project Manager Title: DirectorSouth AfricaDate: ........................................This is theperson who willhelp you withanyadministrationqueries.It’s very important to get allofficial documents signedby everyone involved. In thiscase, it would be somebodyfrom the POLICY Project, thementor and perhapseven the funder. Remember toinclude the date whenthe document was signed.
  • 13. When do weuse thisLetter?
  • 14. To start negotiations.Sets out the terms of yourworking relationship.Used to clarify workingarrangements between two parties.You may want to use it insteadof a more formal businesscontract.
  • 15. Thank you !!!