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
You can find more free letters of agreement in our high quality business letter making software, Business Letter Professional.
CONTRACT FOR PROCESSING WITH SUPPLIED MATERIALS ANDASSEMBLING WITH SUPPLIED PARTS
Messrs,
INDUSTRY LTD. (hereinafter called Party A)andINDUSTRY LTD. (hereinafter called Party B) have agreed that Party B shall manufacture Standard MagneticCompasses in____________ with all necessary parts and materialssupplied by Party A under the following terms and conditions:
1. Commodity and quantities for processing with supplied mate-rials and assembling with supplied parts:
(1) Commodity-Standard Magnetic Compass;
(2) Quantity-____________sets in total.
2. All necessary parts and materials listed in the contract shall ei-ther be supplied by Party A or purchased in ____________ orby Party B;
3. The processing charge for each model is as follows:
(1) Standard Magnetic Compass of Type GLC-1 at U. S. $_____________(SAY:_________________U. S. D) each;
(2) Standard Magnetic Compass of Type GLC-2 at U. S. $_____________(SAY:________________ U. S. D) each;
(3) Standard Magnetic Compass of Type GLC-3 at U. S. $____________(SAY:___________U. $. D) each.
4. The main parts, consumables and materials required for pro-cessing will be sent to (place) by Party A and if there is anyshortage or damage, Party A should be held responsible forsupplying replacements;
5. Party A should pay Party B by L/C or T/T covering the fullamount of processing charges and costs of parts, consumablesand materials purchased in__________or____________by PartyB one month before shipment of the finished products;
6. Party B must complete the manufacturing of all Standard Mag-netic Compasses of type GLC-1 and effect shipment within theagreed date without delay except in the occurrence of uncon-trollable and unforceeable events ;
7. The damage rate of parts and materials:
The damage rate of parts and materials in processing is__________% and such a damage rate of parts and materialsshall be supplied free by Party A, should the damage rate ex-ceed _____________ % , Party B shall supply additional materialsand necessary parts;
8. Should shipment of materials and parts sent by Party A bewrong or in excess, Party B shall return the excessive portionat the expense of Party A, in case of short shipment, Party Ashall make up the shortage;
9. All parts and materials supplied by Party A for Standard Mag-netic Compasses shall be processed by Party B strictly in ac-cordance with the design without any modification;
10. Technical Service:
Party A agrees to send technicians to______________to helptraining Party B's technicians at the request of the latter atany time and allows the technicians to remain with Party Bfor inspection of the finished products. In such case, PartyB agrees to pay a monthly salary of U. S. $ ____________ foreach person, all other expenses (including round triptickets) will be borne by Party A;
11. All import and export formalities in connection with this con-tract should be handled by Party B;
12. All Standard Magnetic Compasses processed by Party B shallbe shipped to the foreign buyers appointed by Party A at anytime;
13. Other terms and conditions:
(1) The trade marks of Standard Magnetic Compass shall besupplied by Party A, should there be any legal dispute,Party A shall be held fully responsible;
(2) The quality of parts and materials, if necessary, pur-chased in__________ or_____________ by Party B for Stan-dard Magnetic Compasses must measure up to standardand be approved by Party A beforehand;
(3)For promotional purposes, Party B shall prepare samplesof Standard Magnetic Compass at any time and sendthem to foreign Buyers appointed by Party A , all partsand materials required would be supplied out of thestock supplied by Party A;
14. This contract shall be made in triplicate, Party A andParty B shall, both signing all copies, retain one copyand submit one to authorities concerned in(place) for registration.
INDUSTRY LTD. INDUSTRY LTD.
________ ____________
Manager Manager