What is a Letter of Agreement?
A letter of agreement is a formal written document that outlines the terms and conditions of a business arrangement or contract between two or more parties. It serves as a written record of the agreement reached between the parties and helps ensure that all parties are clear on the terms the arrangement.
The contents of a letter of agreement typically include details such as the scope of work or services to be provided, responsibilities of each party, payment terms, deadlines, and any other relevant terms and conditions. By documenting these details in writing, a letter of agreement helps prevent misunderstandings and disputes that may arise in the future.
Letters of agreement are commonly used in various business transactions, such as partnerships, collaborations, services agreements, and more. They are often used when a full contract is not necessary or practical, but a written record of the agreement is still needed for clarity and legal purposes.
Overall, a letter of agreement is a valuable tool for formalizing business arrangements and ensuring that all parties are in agreement on the terms of the agreement. It helps protect the interests of all parties involved and provides a solid foundation for a successful business relationship.
A Free Letter of Agreement
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Agreement to Compromise Debt
FOR VALUE RECEIVED, the undersigned being a creditor of _(Company) hereby enters into an agreement to compromise andreduce the indebtedness due the undersigned on the followingterms and conditions:
1. The Company and the undersigned acknowledge that thepresent debt due is $_.
2. The parties agree that the undersigned shall accept thesum of $_ as full and total payment on said debt and incomplete discharge of all monies presently due,provided the sum herein shall be punctually paid inthe manner following:_
3. In the event the Company fails to punctually pay thereduced amount, the undersigned creditor shall havefull rights to prosecute it claim for the total debtdue under paragraph 1 (less payments made).
4. This agreement shall be binding upon and inure to thebenefit of the parties, their successors, assigns andpersonal representatives.
Signed under seal this _ day of _, 20_.
_______________________________Creditor
_______________________________Company