[Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Recipient's Name] [Recipient's Position] [Company/Organization Name] [Company/Organization Address] [City, State, ZIP] Subject: Letter of Understanding Regarding Terms of Proposed Contract Dear [Recipient's Name], I hope this letter finds you well. As per our recent discussions and negotiations, I am writing to confirm our understanding of the key terms and conditions of the proposed contract between [Your Company/Organization] and [Recipient's Company/Organization]. This comprehensive letter serves as a Letter of Understanding outlining the agreed-upon terms, providing a clear framework for a successful contractual relationship. Please review the following details: 1. Parties involved: — [Your Company/Organization]: [Brief description of your company/organization] — [Recipient's Company/Organization]: [Brief description of recipient's company/organization] 2. Purpose of the contract: — The purpose of this contract is to [state the main objective and purpose of the contract]. 3. Scope of work or services: — Clearly define the products, services, or deliverables that will be provided by each party involved. 4. Timeline and deadlines: — Specify the project start date, expected duration, and completion date. — Define any significant milestones or deadlines for specific tasks or deliverables. 5. Payment terms: — Define the agreed-upon payment structure, including any upfront payment, installments, or milestones. — Specify the currency, payment method, and any relevant financial terms. 6. Responsibilities and obligations: — Clearly outline the specific responsibilities and obligations of each party involved. — Address any potential risks, liabilities, indemnification terms, or insurance requirements. 7. Confidentiality and non-disclosure: — Include a confidentiality clause to protect sensitive information shared during the contract period. 8. Termination clause: — Specify the conditions or events that could lead to the termination of the contract. — Outline the procedures for terminating the contract and any associated penalties or remedies. 9. Governing law and jurisdiction: — State the applicable governing law and jurisdiction that both parties agree to abide by in case of disputes. 10. Signature and acceptance: — Both parties should sign this letter to indicate their acceptance and understanding of the proposed contract terms. Please note that this letter is not intended to serve as a legally binding contract but as a precursor to further negotiations and the subsequent drafting of a detailed formal agreement. It is essential that both parties consult their legal advisors and finalize the contract in accordance with applicable laws. If you agree with the outlined terms, please sign and return a copy of this letter to our office within [number of days] from the date of this letter. Should you have any questions or require any clarifications, please do not hesitate to contact me at [your contact details]. Thank you for your cooperation and prompt attention to this matter. We look forward to a mutually beneficial working relationship. Yours sincerely, [Your Name] [Your Title/Position] [Your Company/Organization Name]
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.