Guides to Write a Professional Contract Letter

It’s a great day and we are back to discuss any topic of writing and letters. This day, we are going to share all details about Contract Letter. Some of you may have been familiar with this type of letter because you have handled various projects on your company or even your personal business. For the beginners, it should be a great chance as you will be easy to write your letter by following our guidelines. So, enjoy reading!

What is Contract Letter?

Contract Letter is a legal agreement between two or even more parties that specifies whether each party is accepting to do or not. The parties can be company, organization or even personal business. The agreement in contract letter is a type of written document and legal which is protected and regulated by the law. It is related with the court’s policy that the legal document that can be used as a prove is a written document instead of the oral one.

What is the Difference between Contract and Agreement Letter?

Well, we commonly use the term agreement and contract interchangeably. Yet, both those words are definitely different things. An agreement is a simple and informal understanding or arrangement between two or even more parties. Meanwhile, a contract is a specific, formal and complex agreement with the terms and conditions that are enforceable both in court and arbitration.

For example, you offer your friends to stay at your house when they are in town. That’s a type of agreement because there is no exchange of decision for use your house. Also, there is no term and condition written out during they use your house. Just in case you change your mind for offering your house, they cannot protest it.

Meanwhile, if your friends give you a deposit and agree to pay your house $50 per night, that’s a type of contract. Sure, you should prepare the written form which tells about services as well as the rules that both parties must convoy with. Of course, you cannot be free to change your mind while your friends have right to sue if you break the contract.

How to Write a Professional Contract Letter?

Great! You have known what the differences between contract letter and letter of agreement. Then, when you’d need a business contract? Sure, anytime you will need it. Anytime you sell a product or services or anytime you promise to do something in a business, you will need to write this contract. Now, it is time to practice writing a contract letter. In case you don’t have idea what to do, here the simple guides you can do:

  • Step 1# Prepare the Device

First of all, you may need to prepare the device before starting the letter. Yes, you are free to use either handwriting letter or the electronic document. Both of them have the same rules as it depends on your preference and somehow the parties policies. If you use a handwriting letter, you should prepare the writing tool with a business paper.

Meanwhile, for the electronic document, you can switch on your computer, laptop, tablet or Smartphone. Simply, you can immediately run the Microsoft Word and start writing. When you do the second option, you have to use the basic font that is Times New Roman with 12 size, single space between word and double space between paragraph, and left justify format.

  • Step 2# Make the Heading

The first thing to do in writing a formal letter is about providing a header. Yes, it is all confirmed contract parties’ personal information that is placed at the top side of the letter. You can write your full name, building address, email and active phone number. Just be sure that you write it correctly.

  • Step 3# Mention the Date

For the next, it is about the date, month and year when you write a letter. It must be clear as it may impact on how fresh your delivered information is. For the date format, you can use 13 November 2020 or November 13, 2020.

  • Step 4# Write the Opening Statement

And then, you can start writing the opening statement which explains the general information about the contract. You can give the detail of contract’s title, the purposes as well as the situation why the contracts began.

  • Step 5# Give More Details

It is the most important part on Contract Letter. Here, you can mention all details within the contract, the rules, responsibilities as well as the projects that are happened. Just be sure that you make a draft before putting it on a paper. You should remember that a contract is a legal document which is enforced by law so you have to ensure that all parties understand all things written on the paper.

  • Step 7# Close the Letter

For the rest, you can close the letter with the closing salutation. You can use Respectfully, Faithfully, Thanks, Best Regards and many more related to the topic you bring.  Then, you can close it with your complete Name and Signature. Guys, your signature is very important in a contract, so you have to ensure that you have read all details on the paper and understand its meaning as well.

This is all about Contract Letter and things you should consider when you write it. Now, it becomes your turn to practice it and get ready to boost your business through this type of letter. Don’t forget to watch our video, subscribe our channel and leave your feedback below. Thanks for reading and have a good day!

Leave a Comment