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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Contract for Home Maintenance or Extensive Repairs
This Contract for Home Maintenance/Repairs, is made by and between (Name of Homeowner, "Homeowner" located at:) and (Name of Contractor "Contractor", specify address or if applicable, provide: name of state and Corporation) on (specify date).
WHEREAS, the parties desire that Contractor perform home repairs (or specify, remodeling) at (specify the address of subject premises); andWHEREAS, Contractor agrees to perform the services enumerated hereunder competently, and in a professional manner;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. This Agreement will commence on (specify date).
2. Contractor shall render the following services (specify).
3. Homeowner agrees to pay the following: (such as "Contractor agrees to build a backyard patio for Homeowner. The total job will cost $X including labor and materials. Homeowner agrees to pay $Y upon the signing of this Agreement, $Z when the land renovation is completed, and the final balance of $A when the bricks are satisfactorily laid").
Specify:
* Full amount to be paid for the job
* What deposit, if any, is required as a down payment
* The stages of payment; for example, upon completion of Y, a payment of $X is due; etc.
* If Contractor works by the hour, state the hourly rate; that Contractor will maintain accurate time sheets for himself and his workers and supply Homeowner with said time sheets on a daily basis; and that the job will not exceed X hours
* Who pays for materials, the maximum amount to be paid for materials, and that the Homeowner will receive copies of all receipts or invoices for the materials before payment is made
* Describe the quality of materials to be used, that all materials shall be new or of good quality in compliance with all applicable laws and codes, free of defects for a period of X years, and shall be covered by a manufacturer's warranty if practicable
4. The specified work shall begin on or before (specify date) and Contractor agrees to complete the job by (specify date). Since the parties agree it is imperative that the job be completed by said date and time is of the essence, Contractor agrees to deduct $X from the final price if the job is not completed to Homeowner's reasonable satisfaction by said date.
5. Contractor shall provide his own tools and be responsible for all state and local building licenses and permits and registration requirements. Contractor shall be responsible to procure all appropriate permits, workers' compensation, and property and personal injury insurance, and shall furnish proof of the existence of such coverage to Homeowner before starting the job. The work rendered shall comply with all applicable building codes and regulations.
6. In the event that Subcontractors are used, Contractor agrees to indemnify and hold Homeowner harmless from any claims of payment, as such payment to said parties shall be Contractor's sole responsibility. Final payment of $X shall be withheld until Contractor presents Homeowner with proof that all bills for materials, work, and labor from Subcontractors have been paid in full. (Or: Contractor authorizes Homeowner to make all checks for payment directly to any Subcontractors and/or material suppliers.) Both parties agree to protect the Homeowner from any liens being filed on the premises from Subcontractors or materials suppliers by (specify what protection will be given).
7. Any case or controversy arising among or between the parties, this Agreement, or the subject matter hereto, shall be settled by binding arbitration in (specify location) under the then prevailing rules of the American Arbitration Association. The decision of the arbitrator shall be final and binding. Both parties agree to share the costs of such arbitration equally but the Arbitrator shall be instructed to award reasonable attorney fees to the prevailing party.
8. Additional terms and conditions essential to this Agreement include: (specify).
9. This Agreement supersedes all prior agreements and understandings and can only be modified in a writing signed by both parties.
Dated: ________________ _____________________
Name of Homeowner
Dated: ________________ _____________________
Name of Contractor