The document provides information on what a letter of agreement is and how to write one. It defines a letter of agreement as a formal agreement between two parties for renting, working, subcontracting, buying, or lending money. It then provides details on the typical structure and elements of a business letter, including the letterhead, salutation, body paragraphs, signature, and enclosures. The purpose is to establish the terms of an agreement in writing so that both parties understand their obligations and there are no misunderstandings.

2.  Written list of goods,
services, or space to be
provided at the agreed-
to prices, terms and time. It
becomes a binding contract
when signed by
the associated parties.

3.  An agreement,
in writing between two or
more individuals or entities in
which a court can
impose penalties in the event
one party attempts to negate on
his or her promise as set forth
in the signed document.

4.  A letter of agreement is a
formal agreement between
two people or two parties for
renting, working,
subcontracting, buying or
lending money.

6.  Letter format
The format shown here is a “block” style, which is the most common
format for business letters. All the elements are lined up along an
invisible line down the left side of the page. The text is single spaced,
with no indent at the tops of the paragraphs.
 Letterhead
The term “letterhead” is used for both the sheet of paper, which is
preprinted with the company’s logo, address, phone number and
often a corporate slogan or identifying graphic, and the printed design
itself. Generally of very fine quality and more expensive than plain
paper, letterhead is designed to convey a positive image of the
company. Because the letterhead includes the company’s address,
phone and often email, it is not necessary to include that information
again in the body of the letter. Sometimes the writer will provide a
direct phone number or personal email address if the action
statement calls for direct communication.

7.  Inside Address
Two spaces below the date are the full name and business address
of the person to whom the letter is addressed. If several people
are receiving the letter, all their names and addresses should
appear. Don't confuse multiple addresses with those who receive
courtesy copies of an letter addressed to someone else. Listing
multiple addressees means that each one is receiving an "original"
of the letter. The address on the letter should be the same as the
address on the envelope. As with the date, there can be legal
consequences from inaccuracies. The address on the letter is
presumed to be the one to which the letter is actually sent. If it is
incomplete or inaccurate, a recipient can make the case that the
letter was mailed to the incorrect address as well. Alternatively,
the sender can demonstrate that a letter was mailed to a legal
business address by showing that the complete, correct address
appears on the letter itself.

8.  Date
Write out the full, complete date the letter is mailed, or the date upon which any
agreement being made becomes effective.
Because the letter is a formal document, often used in contract situations, the date can be
extremely important. The letter is usually dated the same day on which it is mailed, but
whatever agreements are included in the letter are considered effective as of the date of
the letter. Thus, a letter might be dated several days into the future to allow for delivery
time.
Generally, antedating a letter is considered unethical, if not fraudulent or illegal. The
expectation is that anything put “in writing” was available for the reader on the date it was
written, perhaps allowing for a couple of days in mailing time.
 Salutation
The formal greeting always starts with “Dear” followed by the person’s title and last name,
and ending with a colon. This requires finding out whether the recipient is properly
addressed as Mr., Ms. or Dr. Attempts to avoid the issue (i.e. substituting the title with the
person’s first name, using impersonal phrases like “Mr. or Ms” or “To Whom it May
Concern”, or eliminating the salutation entirely) indicate that the writer doesn’t actually
know the recipient of the letter at all, making the letter a “form” letter, a much less formal
document.
Pay particular attention to the correct salutations in letters addressed to individuals who
hold legal, religious or political positions. People who have earned titles beyond Mr. or Ms.
can be sensitive about their proper use.

9.  Letter Content
The specific content of the letter will be created to meet the needs of
the situation, but the structure of any letter should meet certain
expectations:
 Context Paragraph
The first paragraph of the letter will define the context, providing a
clear statement of the letter’s topic and purpose. Avoid starting a
letter with legalistic or flowery language that doesn’t explain what the
letter is about. The bureaucratic, “Pursuant to your recent letter of
request, we are hereby responding with the information you
requested,” for example, offers no information at all about the content
or purpose of the letter.
(In social letters or in letters written for businesspeople in European or
Asian countries, it is appropriate to begin a letter with a question
about the family or a comment about recent weather or world
events. U.S. businesspeople, however, generally prefer to find out right
away why the letter has been written.)

10.  Content Paragraphs
The typical letter uses one to three paragraphs to provide the
information relevant to its purpose. Each paragraph should cover a single
topic or point. In the case of a long letter that covers multiple pages, it is
appropriate to break the information into sections with internal headers
or bullets to provide clarity.
 Action Paragraph
The final paragraph of the letter provide a clear, straightforward
statement of the action that will be taken be the writer, requested of the
reader, or expected by a third party.
 Closing
Two spaces below the final paragraph of the letter, a traditional closing
line, generally “sincerely” or “respectfully,” ends the letter. If the
situation calls for a warmer tone, the closing might be “cordially,” “best
wishes,” or “regards.”

11.  Signature
A four-line space allows room for a written signature immediately below the
closing, then the sender’s full name is typed, with the full business title (sometimes
with the department or division as well) on the next line. The signature on a
business letter functions as a legal testimony that the contents of the letter are
complete and accurate and signifies that the writer is taking responsibility for
fulfilling any commitments being made. Thus, even when the sender and recipient
know each other well, a full signature is used.
When writing on behalf of a team or department, type the group’s proper name
immediately above the written signature of the team’s representative:
Sincerely,
T.E.A.M Success
Sandra Thompson
Sandra Thompson
Team Coordinator
The original of the letter is always signed, and when legal issues are involved, care
is taken that only that copy bears an original signature. Sign in dark blue or black
ink, with blue preferred when the letterhead is not easily distinguished from a
photocopy.

12.  Enclosure
When anything is included in the envelope beside the letter itself, it is
indicated two spaces below the signature. This helps the reader notice
that additional items are included and avoids the possibility that items will
become separated. Typically, enclosures are not stapled directly to a
formal business letter, although many recipients will commonly secure the
letter to any attachments (and sometimes to the envelope itself) as soon
as the envelope is opened.
Type “Enclosure” or “encl” if only one item is included, or add the number
of items in parentheses if more than one: “Enclosures (3)”. If the
enclosures have not been specifically named in the text of the letter, a
short title or explanation should be provided: “Enclosure: Job Site
Attendance Log.” The reader should never be left to wonder what an
attachment is or what it is to be used for.

13.  Courtesy Copies
At the very bottom of the letter, the names of anyone else
who is receiving a copy of the letter are provided after a
lower-case “cc:” The person’s title is often listed as well,
especially if the recipient is not expected to know who he
or she is.
Common decency demands that a letter’s recipient be
notified when others receive copies, although occasionally
a “blind” copy is sent. For example, a customer service
representative might write a letter of apology to a
customer, sending a copy to the sales manager or even the
sales clerk involved. The customer can assume that the
problem has been covered with those people, but does
not need to have their names.

14. 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 previous negotiations;
 the agreed-upon terms, including payment; when the
agreement goes into effect;
and when it will end.
With a Letter of Agreement in place,
you'll know what to expect — and what's expected of
you.

15. When do we
use this
Letter?

16. To start negotiations.
Sets out the terms of your
working relationship.
Used to clarify working
arrangements between two
parties.