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 FOR ACQUISITION OF PURCHASE OPTION
This agreement is effective as of ________________________ (Date), by and between ________________________________, of __________________________________ ______________________________ (Address), hereinafter referred to as broker, and ____________________, of _______________________________________________ (Address), hereinafter referred to as client.
PART I.
DUTIES OF BROKER
The client authorizes the broker to act as __________ (His/Her) agent to obtain an option from __________________________, of _____________________________ ____________________________________ (Address), to purchase property located at _________________________________ (Address), owned by ___________________ in fee simple and ________________________ (Unburdened by easements, or burdened only by the following easements: ________________________________ ), at a price of ________________ ($_____) or less.
PART II.
BROKERS COMMISSION
The client promises to pay the broker a commission of ________________ ($_____) or ________ percent for procurement of the stated option.
PART III.
CONDITIONS FOR RIGHT TO COMMISSION
The covenant to pay broker the commission is expressly conditioned on:
1. Ability of __________________________________ to convey a fee simple title;
2. A determination that the property does in fact conform to the legal description set forth above; and
3. A determination that the property is in fact unencumbered by easements other than as set forth above.
PART IV.
FAILURE TO EXERCISE OPTION
Client expressly understands and agrees that __________ (His/Her) failure to exercise an option for any reason other than a defect noted above will not impair brokers right to the commission established in this agreement. The commission will remain payable __________ days after delivery to client of the option.
PART V.
TERM
This agreement shall expire __________ days from the above written effective date. The at that time must return the funds tendered pursuant to this agreement for use in procuring an option.
The broker has no right to a commission for any option consummated after __________ days from the above written effective date
PART VI.
CLIENT NOT TO INTERFERE WITH AGENCY
The client hereby agrees that __________ (He/She) will not communicate with or interfere in any way during the term of this agreement and agrees that brokers commission will be due and payable if any violation by client of this covenant prevents broker from obtaining an option.
PART VII.
GOVERNING LAW
It is agreed that this agreement shall be governed and enforced in accordance with the laws of the State of ________________________.
PART VIII.
BROKERS COVENANTS
1. Broker acknowledges receipt of ________________ ($_____) intended to acquire the option.
2. Broker further covenants to act as the client would with respect to negotiations dealing with _______________________________________________.
3. Broker must maintain a record of all activities relevant to negotiations with ________________________________________ and to keep such records for __________ years after this agreement.
In witness whereof, each party to this agreement has caused it to be executed at ____________________________________________________ (Location) on _____________ (Date).
_________________________ _____________________
Signature Date