Letter of Understanding

A letter of understanding is basically a document that reaffirms the issues discussed in a meeting or the oral agreements made in a previous conversation. For example, if you were to have a meeting with a consultant, and you make a deal, but no contracts are drawn up or signed, he may send you a letter of agreement reaffirming everything that was said and verifying your commitment to a deal. This letter is not a legally binding document, but more of a common courtesy between two people trying to make a deal.

Sample letter of understanding

Kathleen B. Talmage

34 Golf Course Drive
Arlington, VA 22201


Dear Mrs. Talmage

I want to once again thank you for coming in for a meeting with me on Friday, October 7th, 2009. I think we made some great progress towards reaching your goals.

As per our meeting, I just want to reaffirm the agreement we made:

1)        I will act as your business consultant until the end of 2009.

2)      I will handle everything in terms of sales and sales training

3)      I will be compensated with a base salary of $3200 per month, plus 30% of the commissions my sales team makes.

Please respond to verify that the contents of this letter are correct and you wish to continue pursuing our relationship!


David Lee

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