Contract Agreement Letter


The purpose of a contract agreement letter is to formalize the understanding between two parties to facilitate the execution of a contract. For example, it might be anything from purchasing real estate to distributing a product.

To prevent misunderstandings on the road, both parties must understand the terms and conditions in the contract’s agreement letter.

This kind of agreement is signed whenever two firms enter into such a contract for the business’s long-term viability.

A letter of agreement must be signed by both the receiving company and the firm receiving the order, saying that they have accepted the order and are willing to agree to the latter’s terms and conditions.

The firm then promises the other company to provide them with the most excellent service possible. A contract agreement letter may be written using the advice and examples below.

It might be a contract for employment, a commercial deal, or any other agreement between two people. Tips and an example agreement letter are provided below.

Contract Agreement Letter Writing Tips

  • The terms and conditions of the contract should be made explicit in the letter.
  • All of the party’s interests must be protected.
  • It is essential that all of these aspects of the contract commodity, including time, quantity, and quality, be clearly defined.
  • If one party breaches the contract, the other should be able to take legal action against them.

Contract Agreement Letter Template

Use our free Contract Agreement Letter to help you get started. If you need additional help or more examples, check out some of the sample letters below.



Date: _____ (Date on Which Letter is Written)



Subject – _______________________(Mention the purpose)

Respected _______(Name)

I am _____ (Your Name) and this letter is to highlight contract work of my house to the agency as the second party with a deadline of ___ year(mention the deadline) from now with an estimated target of ____(estimated price). The requisite amount for house construction will be delivered to the agency in five equal installments.

And if there is any delay to work and any impediments to the work on account of the fault from the agency, they are expected to bear the loss.

Thanking you.

Yours Sincerely,


Name and signature

Sample Letter

The following is a sample that must be followed while writing a contract agreement letter.



Hardy Road 

Golden Church 


March 22, 2022. 


Rock Peter Road 

Red Cross Temple 


Dear Sir,

This agreement is to give the contract of my work for house construction to the agency as the second party. The total estimated cost of the construction will be around Rs 40,00,00, and as per the contract, the full responsibility of building and making it into a habitat fit from falls with the responsibility of the contracting agency. This includes giving wages, the supply of materials, its purchase, etc.

As per the agreement, I will disburse 20% of the total estimated amount in five equal installments, and the contracting agency is expected to convince me of the progress of the building in real terms.

As per the agreement, the full finish of the house will be done within one year, and by the end of December 2014, the house will be finished.

If there is any violation of this contract, it is at this moment made clear that the contracting agency will bear the loss in any term that may cause as a result of their malfunctioning or delay.

I hope this is agreeable to you, and if you find any doubt about this, you are free to contact me.

Yours sincerely,

Thanking you,

Yours sincerely,

Your Name

Also See : Application Letter for the Post of Lecturer

Email Format

The following is an Email Format that must be followed while writing a Contract Agreement Letter.



SUBJECT: Contract Agreement Letter

Dear Mr./Mrs./Ms./____________,

We had submitted a tender along with the proposal for the maintenance of all your office computer hardware systems. We are very grateful to your company that you have accepted our proposal, and now your company is looking forward to making a one-year renewable contract with us.

As we have already received a copy of the contract from your side and all the terms and conditions are written in the contract were accepted by us. 

As far as payment structure is concerned, we have already discussed this at the time of the meeting that we will charge you Rupees 50,000 per month, and the payment should be made till the 21st date of the subsequent next month.

But one issue which we had discussed at the time of the meeting is not the same in the contract that is we will provide you six services in a month, but instead of 6, it is written as 9 in the agreement. I wanted to discuss this topic with you so please can you arrange a meeting for this.



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