Payment Agreement Letter Sample. A payment agreement letter is a legally binding contract between someone who borrows money, the promisor, and the person who lends the money, the payee. A letter of agreement defines a project and all that is connected and associated with it.
Most of people think that payment agreements are only prepared for recovery of loan payment but it is totally wrong concept. Besides bank, the agreement may be between seller and buyer. A payment agreement template is an important document which outlines all the terms and conditions of a loan.
Letter of agreement for payment means when one is working in any company or hiring a business, he should be aware of payment agreement letter between two parties signed between two contractors regarding payment.
A payment agreement letter is simply a written commitment or a promissory note about the payment between two parties regarding some transaction or business dealings. It must include the cause or the reason for which the payment was done and must reflect the thankfulness of the payee towards the one who pays. This is a formal letter of agreement for payment for the damage i caused to your car on {{date}}. Also known as a promissory note, this legal contract is a mutually agreed arrangement between two people and it specifies the details of the parties involved, the amount that is owed, the date, time period, rate of interest, etc.