The letter of contract can also be considered a legal document that protects your legal rights and obligations. In this context, the letter of agreement should contain complete information about the parties (name and address). The terms of the agreement must be clearly stated in the letter; Project type, description of specific product, project cost, payment terms, payment method and other possible consideration. In the Building Materials Wholesale, Inc. v. Triad Drywall, LLC6, for example, a dry materials installer sued its equipment supplier for breach on the basis of a correspondence agreement. Following a mail-order agreement with a price indicated to the installer, the drywall supplier purchased materials and continued negotiations on contractual terms, including price. Finally, the drywall supplier sold the materials to another installer for much more money than he cited on the grounds that he had no contractual obligation to the original dry construction installer. The court disagreed and found that the conditional Memorandum of Understanding, followed by the approval of a follow-up sub-contract, constituted a binding contract, as “consent under the contract may be given other than by signatures.” An agreement is a consensus between two parties on a thing, a plan or an agreement. The letter of agreement therefore refers to a situation in which both parties are on the same side to enter into a contract. These letters of agreement are very helpful. A contract letter can be written to show your consent for a business, a job or a deal.
Since this letter is a formal letter, so it must be written in a formal style, the language and word choice must be appropriate and this letter must be clear, as it has legal value. Such a letter is always addressed to the person, party or company with which you enter into an agreement. It also shows that both sides discussed all the important points and reached a decision. 4 doll v. Grand Union Co., 925 F.2d 1363, 1367 (11. cir. 1991) (Finding that “agreements of agreement or interim mous concluded in the future are not applicable”).