Confirming an Agreement by Letter

Sending a letter to confirm an agreement is appropriate in numerous circumstances. It is often associated with financial agreements where a specific figure or group of figures have been discussed verbally in relation to lending or borrowing or for work agreed to be carried out but confirmation agreement letters can be used in a whole variety of other circumstances. They can be used to confirm any decision where an agreement has been reached verbally prior to the letter. The letter basically ensures that both parties are fully aware of the agreement that has been reached that they both share the same understanding of the agreement and that both parties have a written reference of what exactly was agreed at the time to keep on file for reference should a dispute or misunderstanding arise further down the track.

How to Write The Letter

Writing the letter can often also be used to confirm that goods or a service you have ordered will arrive by a certain date, the method of delivery and the total cost agreed or that travel reservations have been made according to what has been requested. They can be viewed, in simple terms, as a legal safeguard which you send to somebody to confirm in writing something you have discussed and agreed to verbally, either over the phone or in person, previously.

They should be fairly brief, accurate and should neither be vague nor ambiguous and should leave the recipient in no doubt that what is stated in writing in the letter is exactly the same interpretation as to what was previously agreed verbally. As a gesture of courtesy and to avoid any misunderstandings which, in severe cases, could prove very costly if challenged in a court of law, you should also ask the recipient to contact you should they be in any doubt as to what is being agreed.

You will find an example of how to write this letter in our Essential Business Letters pack, which can be accessed via the Downloads section of this site.