Letter of Understanding

Description of Letter of Understanding

When you come to a verbal agreement with another person or with a company, there might not be an instance of making a written contract. That is why writing a letter of understanding is very useful tool to leave for granted an agreement.

Example of Letter of Understanding – sample

Letter of Understanding

How to write? – Advice and Tips

It is a way to write down what has been discussed in a meeting about a project, when an agreement has been made, the organization of a future meeting, etcetera. It should be mentioned that this letter is not a legal document but a formality between two people who have agreed about something and to recall the agreement conditions.

When you write a letter of understanding there should be some things to be taken into account:

1. If there were other previous meetings in the past, this must be expressed, with correspondent date and place. The same applies if there was an exchange of correspondence between the parties.

2. Include a description of the topics discussed during the meeting and the position taken by both parties.

3. Emphasize the terms in which both agree.

4. If necessary, indicate the need to proceed to a formal contract.

5. Try to be brief and mention the most important points of the agreement.

6. Request a response if necessary.

7. Sign the letter.

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