Why Should Write A Business Agreement Letter?

One of the important keys in doing business is mutual trust. In the business world, when you are required to trust each other, the most important thing you can do is writing a business agreement letter. Therefore, the business purpose and objectives will be clear and have a formal foundation, so that both parties will comply with the applicable rules. If you want to write an agreement letter, you must pay attention to some important elements.


What Are The Components of Agreement Letter?

When writing a letter of agreement, there are several important points that you must write, here are some aspects that you need to include in your letter format:


Make sure your letter has a formal and elegant introduction. In this part, you need to write the purpose of the letter you are writing. Keep the introduction short and clear to make the format of your letter is simple and elegant.

Content of the Agreement

In this part, you must write the products or services that you offer. Describe in detail what is being offered and done between the two parties.

Compensation and Date

Don’t forget to write the payment or compensation that will be obtained in return for the product or service offered. You can also add certain conditions related to the payment.

Apart from writing the compensation, it is also important for you to write a date or deadline so that compensation payments can be more controlled.

How To Write An Agreement Letter?

The business agreement letter that you write must be in a general and formal business letter format. Several aspects that you need to include such as contact information for both parties, requirements, date, and time. The letter must consist of the signatures of both parties who mutually agree. If there are parties that fail to fulfill the contents of the agreement, then there are certain consequences as agreed.

Business Agreement Letter Sample

After paying attention to the brief explanation above, you can start writing a letter of agreement by considering the example below:

Dear Amy,

As discussed in the preliminary agreement letter, we agree to use your service as a publisher for our college material books and in return, we will entrust all of our book printing to your service. Please give your sign at the bottom of this letter and return it to me immediately. You are also welcome to write certain notes or attach some. As soon as you sign this letter, we will prepare a formal contract.

Preliminary Business Agreement

First Publishing will provide the best service in the form of publishing the best quality books with a 35 percent discount. This applies to all lecturers or students from ABC University who wish to publish a book on First Publishing.

ABC University will direct all lecturers and students who will publish their books at First Publishing. The 35 percent discount applies only to the first 20 publishers each year.

This agreement is valid from the date this letter is written until the contract ends according to mutual agreement. There is no additional fee for this agreement.

Hopefully, this agreement will be accepted, so your publishing service and our university can form a long-term partnership.

Kate Sharon


ABC University



Kate Sharon, ABC University



Amy Parker, First Publishing

January 15, 2020

In short, it is important to write a business agreement letter to avoid several unwanted things in the future. Besides, pay attention to some crucial elements that you must write in your format.



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