A letter of agreement is an important document in a business relationship, but with so many types of agreements, it can be difficult to know what each one needs to include. Using an agreement template makes the task much easier. That way you can focus your time and energy on more important aspects of your business transaction.
Below, we have different agreement templates arranged by purpose, which saves you the trouble of making one from scratch. Learn about the different kinds of agreements here, and then choose the one that works best for your needs.
Why Use an Agreement?
An agreement letter defines in writing the terms of an agreement between two or more parties, so each party knows exactly what they are responsible for. It also protects their legal rights.
Letters of agreement help prevent confusion or additional negotiations later on, since each business associate can refer back to the document at any time.
Common examples of agreements include tenancy agreements, car rental agreements, and payment agreements. Each agreement letter will contain different information depending on what it’s for.
However, agreement letters almost always contain this information:
- Contact information for both parties
- Location/state whose laws apply to the agreement
- Terms and conditions of the business relationship
- Terms of payment
- Start date of the agreement
- End date of the agreement
A sample agreement is a great way to make sure that your agreement has all the information it needs, presented in a professional, polished way.
Let’s take a closer look at some different types of agreement letters. We have a number of agreement templates you can easily download, fill out, and print.
A non-disclosure agreement, also known as a confidentiality agreement, details what information should not be shared outside of the parties in the agreement. It may cover information or materials (such as photos) that cannot be shared with third parties.
An example of a non-disclosure agreement is a HIPAA confidentiality agreement. HIPAA laws mandate that patient information cannot be shared with third parties by a patient’s healthcare provider. Many medical offices will have these non-disclosure agreements for vendors, contractors, students, or other non-employees who work with them.
Confidentiality agreements may be used in many other cases, as well. If you are catering a celebrity event, for example, you might need a non-disclosure agreement stating that employees may not take or share photos or audio. Our non-disclosure agreement templates make it easy to make your own.
Several types of agreements are related to tenancy or tenant/landlord business relationships.
A security deposit agreement outlines the amount of security deposit to be collected, the reasons why the deposit may be kept, and when and how it will be returned to the tenant. The security deposit agreement is often part of a longer lease agreement.
A lease agreement gives the terms of a lease, such as whether it is a month-to-month lease or for a fixed period of time. A sublease agreement is between a current tenant and a new tenant who temporarily will rent the space from the current tenant.
All of these tenancy agreements also will have information about payment, expectations while renting the space, and beginning and end dates of the rental term. Our tenancy agreement templates help you ensure that all of the necessary information is there.
Payment agreements are used in business relationships when one party agrees to pay another. Freelancers and independent contractors often use payment agreements with their clients to ensure that they will be paid fairly and on time. Many payment agreements also fall under other categories, such as service agreements.
A car rental agreement is a type of payment agreement. Car rental agreements likely will cover insurance information, contain a description of the vehicle and its registration information, list the odometer reading, and note any existing wear and tear so the renter is not liable.
A vendor agreement is another type of payment agreement used when a vendor at a fair or market must enter into an agreement with the hosting party. In a vendor agreement, the vendor may pay for their space up-front, but then keep any profits from the event, or may agree to pay a commission of their profits to the host.
These agreements cover payments, but also line up terms and conditions of what is expected of both parties.
A purchase agreement outlines the terms of a one-time purchase, rather than an ongoing payment.
A car sale contract agreement falls under this category. This agreement will contain details about the vehicle itself, any damages or issues, and the odometer reading. It also will state the date of sale and the purchase price, or information about an agreed-upon payment plan. The sale contract should state that the car’s title is clear and the seller has full authority to sell that car. The contract also may mandate a pre-purchase inspection before the sale is completed.
Other kinds of purchase agreements include real estate agreements or land sale contracts. These agreements will mention necessary details about mortgages and loans, whether the seller will help with closing costs, if a home inspection is required, and any appliances or furniture being sold with the home.
Other information may be necessary, depending on the type of purchase being made. Our purchase agreement samples below make it easy to find the right agreement for your upcoming purchase or sale.
A partnership agreement is between two people who are entering a business partnership, such as starting a company together.
This document outlines each person’s roles and responsibilities. It contains provisions for everyday company operations so that no one is confused about what they are expected to do. It also will describe what will happen if the partnership is dissolved for any reason.
The agreement should state how much money each person is investing to start the company, how payment will work, and what will happen if one of the partners voluntarily leaves the arrangement or is forced to leave due to death or illness. One other important thing that a partnership agreement may contain is how decisions will be made when the partners disagree.
Operating agreements are similar to partnership agreements, but are used for limited liability companies (LLCs) instead of partnerships. LLCs typically have multiple members, instead of just two partners. However, the terms “operating agreement” and “partnership agreement” sometimes are used interchangeably.
The information contained in an operating agreement is essentially the same as that of a partnership agreement. It should describe how basic business operations will function, including contribution and reimbursement expectations. It also should outline what will happen if disagreements, or worse, arise, and how decisions will be made. This kind of agreement helps business partnerships run more smoothly, even in the face of the unexpected.
A service agreement is used when one individual or business provides a service to another. Service agreements may be used by freelancers, contractors, consultants, or anyone who needs or provides a service. Either side may provide the service agreement, whether it’s the party that’s providing the services or the party that’s contracting the services provided.
Service agreements protect both parties by outlining what services are expected, when or for how long they will be provided, and how much the provider will be compensated for those services. These agreements may contain details on the payment method, how the services will be performed, or what will happen if extra services are requested. A good service agreement helps both parties understand what is expected of them, preventing disagreements and unfair conduct.
Other Agreement Samples
In addition to the categories listed above, we have many other types of agreement letters. You’ll find more agreement templates for a variety of situations here. These templates make it easy to cover all of the necessary information, no matter what kind of agreement it is.