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How to write a contract letter

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How to write a contract letter
September 05, 2019 Anniversary Wishes For Parents 3 comments

Contract letters and documents are used for a wide variety of contract types and situations. Here are some real-life sample contract letters.

A contract is simply an arrangement between two or more parties, generally involving a document which, when signed, legally binds one person or group to the accomplishment or execution of a task in exchange for a given amount of money. Once a contract has been signed, the fulfillment of the contract terms is compulsory, by law. If the terms of a contract are not fulfilled, then the party who is not holding up its end of the agreement is said to be in breach of the contract. This is unacceptable and the wronged party can take legal action to enforce the contract terms or seek other forms of compensation. Legal action begins with the drafting of the breach of contract Letter. To write a breach of contract letter, follow the steps in the guide below.

Step 1

Scrutinize a copy of your contract. Read it carefully. Be certain a breach of contract has occurred before you proceed. If you are not certain, consult a legal representative or a legal aid adviser.

Step 2

Begin by addressing the letter to the person or company with whom you hold the contract.

Step 3

Open the body of the letter with a statement such as, "It is my opinion that ___ has committed serious breach of contract in the following manner:"

Step 4

Follow this with an enumerated list of the ways the contract has been violated. Be sure to refer back to the original document for each specific infringement. For example, "In the original contract, clause 3.1, the contractor states that work will proceed at a reasonable rate. No work has been done for at least 3 weeks in an obvious breach of contract." Be specific and include as many details, such as names and dates, as you possibly can.

Step 5

Close the letter by offering them an out. This is a legal way of making nice and giving them a chance to defend themselves. You might write something similar to the following: "Please submit any evidence to indicate why I should not take any further legal action to cancel this contract and seek reimbursement for financial damages accrued during this time period."

Step 6

Type in your name, address and phone number. Beneath this information, sign your name in ink and add the date.

Step 7

Make photocopies of your letter. File one at a safe place and send the other, via certified mail, to the recipient. This way you will have proof they received your letter.

A contract is simply an arrangement between two or more parties, generally involving a document which, when signed, legally binds one person or group to the.

How To Write A Contract Letter: Everything You Need to Know

how to write a contract letter

As a professional freelance writer, you know you need some kind of contract or document that covers the arrangements made between you and your client. But what if you need something fast, or perhaps a document that is a little less formal?

A Letter of Agreement often serves to informally outline all of your agreed-upon terms, but without the extensive legalese of other freelance contracts. Freelance writers may opt to use this alternative form of a contract to simplify the process while still protecting themselves.

What Is a Letter of Agreement?

The Letter of Agreement (LOA) is indeed in the form of a letter, yet it still requires two signatures and protects both parties.

Notice how detailed the sample letter is below. Generally, we recommend including the following sections:

  • Services to be Provided
  • Services Not Provided
  • Final Deliverables
  • Delivery Terms
  • Fees
  • Payment Terms

Sample Letter of Agreement

The following sample is very loosely based on an actual LOA with all identifying information changed. Use the outline to prepare an LOA for your client, or to take to your lawyer as a starting point for your project.

Text of the document is given in regular font, and instructions are included in italics.

Name of Project (Make sure it's descriptive)

As promised, I have set out below a description of the services that I, Your Name, ("Editor") will provide to you, Client Name ("Author"), together with our agreed-upon fees. I will provide the following services: (The following list will then set out all the needs and wants that I've negotiated with the client. Notice the details covered, such as style guide, tone, and so on):

  • High-level editing and proofreading of website copy using Microsoft Word's "track changes."
  • Final delivery in Word .doc format with "track changes" feature turned on.
  • Style choices and issues will be determined based upon the AP Style Guide and the client's house style.
  • Author's tone and style will be retained.
  • Documents will be returned edited within 48 hours (business days only, unless specifically requested by author).

Please note that we have not agreed to these services (this is equally important and serves to clarify the agreement):

  • Software conversion (i.e., PDF or similar).
  • Graphic changes or edits.
  • Whatever else you can think of, here is the place to carefully avoid problems.

Final Deliverables: (these should be actual, tangible delivered products)

  • Five Word documents with "track changes" feature turned on.
  • All notes and research used for this project, via a summarized Word document.
  • A clean PDF copy of all documents with changes accepted.

Delivery Terms: (how and when each piece of the project is to be trafficked between both parties. Will you use email? An FTP site? etc.)

  • Author to provide manuscript via Microsoft Word or convertible file.
  • Editor to return manuscript via Word in 48 hours.
  • Editor to provide invoice with completed manuscript.
  • Author to pay by check within three working days for said work.

My fee for these services will be as follows: (All fee details go here)

  • $50 per 200 words
  • Additional expenses: No additional expenses are anticipated; no additional expenses will be charged. (This is the ideal place to add shipping fees, Paypal fees, etc. if needed)
  • Payment can be made to Paypal or check/money order to the address above.
  • Payments will be due three days after copy is returned to the author.
  • No new copy will be taken on until payment is made for previous work completed.
  • Any outstanding payment issues will be referred to an attorney representative at (name of your union if you are in one. One example is the National Writers Union. This is also a good place to outline your personal steps in collecting unpaid freelance writing payments.)

If you agree that the foregoing fairly sets out your understanding of our mutual responsibilities, please initial a copy of this letter in the space indicated below via typing, fill in requested address information and email it back to me. However, if you'd like changes made, let's chat!

Insert signature lines and dates here.

Conclusion: Your Sample LOA

Again, this sample LOA shows that a relatively informal document can outline all your negotiations and clarify your project with your client. Other kinds of contracts, such as a Statement of Work or a full, legal contract are also viable options for the freelance writer-client relationship. Also, consider contract management software.

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How to Write a Breach of Contract Letter

how to write a contract letter

You will know your business is doing well when the suppliers and other stakeholders will take a positive interest in your company. It is evident that you will need to write contract letters then. This will be the starting point of an official relationship between you and the other party concerned.

What is a Contract Letter?

A contract letter is a letter between two parties that is sent to confirm the early negotiations between them, and a significant document in case there are future disputes. It can be the contract for buying a property, hiring an employee, marker of the distributable, etc. It is a written version of the agreement that both of you have had in acceptance of the terms and conditions in doing business together. 

What to Include in a Contract Letter:

A contract letter will represent your business. As much as it needs to be graceful, it needs to be professional. Since it is the starting point of a probable long-term relationship, it needs to be comprehensive, well-written, and free of loopholes and confusion to avoid future debate.

In case of trading, the company receiving the order thus has to send a contract letter confirming the order and reassuring the points of agreement like supply dates, supply needs, quality, quantity, related costs, exceptions and other specifications, what will happen in terms of delay or provisions if the items are faulty or do not meet the standard, etc.

In case of hiring, the company has to send a contract letter to the employee with necessary details covering his status (full time or part time, non-exempt or exempt), the amount of salary agreed upon, when will the salary be payable, a summary of the important company benefits, the reporting structure, information about probation, job responsibilities, probability of transfers, any other condition that the employee has agreed to work upon, etc.

The steps to Write a Contract Letter:

You will need to follow the following basic format and structure to draft your contract letter. Here I will take you through the contents of a contract letter following a trade agreement:

  • Start with details of your company and follow with details of the person you are writing to. Include posts of both parties of the companies, the company names, the phone numbers, and addresses.
  • Start with a friendly salutation, “Dear…………..”
  • Start simply with why you are writing, in this case, to confirm the agreement and so on. Give details to the contract since you might not be the only one they are supplying to.
  • Let them about their reputation and how you are pleased to work with them and take a turn the topic to your company.
  • Now include the required details: quantity and quality of materials to be received, type, model number, time, date, and other terms and conditions.
  • Close with an invitation to contact if required.
  • End with signature and goodwill.

Tips to Remember:

Don’t forget these while you’re at it:

  • Start with the company letterhead.
  • Avoid mistakes in spelling, grammar, and most importantly, numbers. If you need 696 solar panels do not kindly write 966 or 969. Remember, this is a proof of what you’re telling and what they’ll have to do. Your mistakes might cost you more than what it will cause the other party.
  • Make the other party feel appreciated. This promotes a sweeter relationship in the making.
  • Cover the specifics in a list or in your mind before sitting to write, so that you don’t forget anything.  Don’t sound vague. Cover all the details so that both of you are on the same page and there’s no scope for future complaining or confusion that a particular part of the letter was not clear.
  • In the process of giving information and maintaining details don’t sound very complicated.
  • Remember to sign the letter and date it properly. If you’re writing it on 2nd Jan and mailing it on third, having mentioned in the letter that you need the items with 4 business days, you can easily imagine how much confusion there will be, even if all your product specifications were crystal clear.
  • Ask a legal team to review your letter before sending so that there are no possibilities of exploitations due to loopholes.

 

Published By LearnGrammar.Net

It is evident that you will need to write contract letters then. This will be the starting point of an official relationship between you and the other party concerned.

Contract employee offer letter sample

how to write a contract letter

When it comes time to renew your contract, you may find yourself wanting to make adjustments to the existing conditions. As part of the pre-contract negotiation process, comb the fine print in your existing document and make note of the items that are dated, no longer relevant or that need altering. Once you complete your research, you can craft your letter regarding the renewal of your contract.

Comb Your Contract

Go through your current contract line-by-line and assess what you want to keep, eliminate or change. Here are some things to look for:

Duration and renewal terms: was your contract too short, leaving you hanging after just six months, or was it too long, forcing you to wait a long period of time to negotiate new terms?

Responsibilities: have your daily activities increased, decreased or stayed the same? Are there elements of your role you’d like to enhance, eliminate or change?

Goals and objectives: are the goals and objectives outlined since your last contract negotiation still relevant or applicable?

Terms (compensation and perks) have you increased or decreased your workload and responsibilities in such a way that your compensation package requires adjustment?

Title: is your title still relevant and appropriate for the role you play in the organization?

Oversight responsibilities: does the contract accurately describe your responsibilities, or does the language need revision? Are there elements of the section you want to propose altering in any way?

Expected percentage of travel time: is the anticipated travel schedule realistic or outdated? Are you traveling more than anticipated or more than you would like? If so, do you what to cut back or ask for additional compensation?

Costs not borne by company: are there particular costs the company doesn’t reimburse, such as costs when traveling, use of cell phones or a personal vehicle?

Having an idea of the main elements of the contract that should be changed or altered will help you craft an appropriate letter.

Making Your Case

The letter you write should address the specific aspects of your contract renewal you want to debate or discuss. Start out with a brief overview of what’s to follow, then get to your specific points and explanations.

Examples:

As you may know, my contract is up for renewal next month. In advance of that date, I have reviewed last year's agreement and would like to suggest a number of alterations to next year's contract.

Since taking over the customer service division mid-year, I have taken over responsibility for three new direct reports, and have been charged with an 18-month plan to overhaul the online customer service portal. As such, I think it is appropriate to revise my title and compensation structure accordingly, as well as update the section of my contract that details responsibilities.

Additionally, last year's contract stipulates that less than 10 percent of my time would be devoted to travel, yet in the last fiscal year, more than 22 percent of my time has been spent on regional branch travel. I don’t have a problem with that figure but would like to request an increase of my daily expense reimbursement by 35 percent and ask that the cost of my spouse accompanying me on weekend trips be covered in full.

Thank you for your attention and consideration of my requests. I look forward to discussing these matters with you in person.

While you may not always get everything you ask for in a contract renewal, your negotiation should carry more weight when it’s carefully thought out and explained in detail.

About the Author

Lisa McQuerrey has been an award-winning writer and author for more than 25 years. She specializes in business, finance, workplace/career and education. Publications she’s written for include Southwest Exchange and InBusiness Las Vegas.

WATCH THE VIDEO ON THEME: How to Create A Basic Letter Of Agreement

Written contracts may consist of a standard form agreement or a letter confirming the are in writing, to avoid problems when trying to prove a contract existed.

how to write a contract letter
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