LETTER AGREEMENT Meaning and
Definition
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A letter agreement is a type of written contract or arrangement between two or more parties that outline the terms and conditions of their agreement. It is typically a brief and straightforward document that is less formal than a traditional contract, often used when the parties do not wish to create a lengthy or complex legal agreement.
The purpose of a letter agreement is to establish the basic understanding between the parties involved, ensuring that all parties are on the same page regarding their rights, obligations, and expectations. It typically covers various important aspects, such as the nature of the agreement, its duration, and any specific conditions or requirements. A letter agreement may also include provisions related to payment terms, confidentiality obligations, and dispute resolution mechanisms.
Although a letter agreement is generally less formal than a full-fledged contract, it still holds legal weight and can be binding depending on the intentions of the parties involved. As such, it is critical that all parties carefully read and understand the terms before signing or accepting the agreement. Amendments or modifications to letter agreements are often made in writing to ensure clarity and prevent any misunderstandings.
Overall, a letter agreement serves as a concise and flexible means of documenting an agreement between parties, providing a framework for their relationship while offering a more simplified alternative to traditional contracts.
Etymology of LETTER AGREEMENT
The etymology of the phrase "letter agreement" can be traced back to the Middle English and Old French origins of both the words "letter" and "agreement".
1. Letter: The word "letter" originates from the Old French term "lettre", which itself evolved from the Latin word "littera". It referred to a written character or symbol used in writing.
2. Agreement: The word "agreement" comes from the Old French term "agrement", which also derived from the Latin word "agreementum" meaning "to come to a mutual understanding". "Agreementum" comprises the Latin terms "ad" (to) and "gratum" (pleasing).
Combining these two words, the phrase "letter agreement" implies a written document that outlines the terms and conditions agreed upon by parties involved. It represents a mutual understanding or arrangement that is conveyed through the medium of a letter.
