Letter Of Understanding & Agreement

From,

Jackson,

#3,Pearl city,Melbourne.

Date: 20.06.2017

To,

Smith,

#5,Golden Avenue,Melbourne.

Subject – _______________________(Mention the purpose)

Respected _______(Name)

We are writing this letter to thank you for selecting our web designing services. As per our agreement, our standardized rates for the services given in detail above are ____(mention the cost) with an estimated time of ____(No. of hours) of working.

In addition to that for the content services we charge extra hourly rate of ___(mention the rate) that include time for copy writing, editing, teleconferencing, meeting, consulting, travel, and research. If you have any doubts regarding this, please feel free to contact me.

Hope you will get back to me very early,,.

Thanking you.

Sincerely,

Jackson .

Name and signature.

Why Letter of Understanding & Agreement

1. Clarifies Expectations:
   • A Letter of Understanding & Agreement helps to clearly outline the expectations and responsibilities of each party involved, reducing the chances of misunderstandings.
2. Formalizes Verbal Agreements:
   • It serves to formalize any verbal agreements made, ensuring that all parties have a written record of what was discussed and agreed upon.
3. Provides Legal Protection:
   • The Letter of Understanding & Agreement acts as a legally binding document that can protect the interests of all parties if disputes arise in the future.
4. Facilitates Clear Communication:
   • It ensures that all parties are on the same page by providing a written summary of the key points discussed and agreed upon, which improves communication.
5. Outlines Specific Terms:
   • The Letter of Understanding & Agreement details specific terms and conditions, including timelines, deliverables, and payment schedules, making it easier to manage the agreement.
6. Serves as a Reference:
   • It provides a reference point that all parties can refer to throughout the duration of the agreement, ensuring that everyone remembers the key details.

Importance of Letter of Understanding & Agreement

1. Establishes a Clear Foundation:
   • The Letter of Understanding & Agreement is important because it establishes a clear foundation for the relationship between the parties, setting the tone for future interactions.
2. Reduces the Risk of Conflicts:
   • By detailing the agreement’s terms, the Letter of Understanding & Agreement reduces the risk of conflicts and disagreements that may arise from unclear expectations.
3. Ensures Accountability:
   • The Letter of Understanding & Agreement ensures that each party is accountable for fulfilling their obligations, as the document serves as a formal commitment.
4. Supports Legal Enforcement:
   • In case of non-compliance, the Letter of Understanding & Agreement can be used as a basis for legal enforcement, offering protection to the affected party.
5. Promotes Transparency:
   • The Letter of Understanding & Agreement promotes transparency in the relationship, as all terms are clearly documented and agreed upon.