A letter of verbal agreement is a written document that outlines the terms and conditions of an agreement that was originally reached verbally. In essence, it serves as a written confirmation of an oral agreement that was made between two parties.
While verbal agreements can be binding, they are often subject to misinterpretation, misunderstandings, and even disputes. That`s why it`s always a good idea to put the terms of an oral agreement in writing, so that both parties can refer to it in case any issues arise.
A letter of verbal agreement can be used in a variety of situations, such as in business deals, employment contracts, rental agreements, and so on. It typically includes the names of the parties involved, a summary of the verbal agreement, the terms and conditions of the agreement, and the signatures of both parties.
When drafting a letter of verbal agreement, it`s important to be clear and concise. Use plain language and avoid technical jargon or complex legal terms that the other party may not understand. Make sure that the terms of the agreement are specific and detailed, so that there is no room for misinterpretation.
In addition, it`s essential to ensure that both parties fully understand and agree to the terms of the agreement. It`s a good practice to have a face-to-face meeting or a phone call to discuss the terms of the agreement before drafting the letter. This will give both parties the opportunity to clarify any misunderstandings and to ask any questions.
Once both parties are satisfied with the terms of the agreement, the letter of verbal agreement can be drafted and signed. Remember that the letter is a legally binding document, so it`s important to keep a copy for your records.
In conclusion, a letter of verbal agreement is a valuable tool that can help prevent misunderstandings and disputes in any situation where an oral agreement was made. By putting the terms of the agreement in writing, both parties can refer to it in case any issues arise and ensure that the agreement is clear and legally binding.