An agreement is a consensus between two parties on a thing, plan or agreement. The letter of agreement therefore refers to a situation in which both parties are on the same side to conclude a contract. These letters of agreement are very helpful. A contract letter can be written to show your agreement for a company, job or agreement. As this letter is a formal letter, it must be written in a formal style, the language and choice of words must be appropriate and this letter should undoubtedly be clear, as it has legal value. Such a letter is always addressed to the person, party or company with whom you are signing a contract. It also shows that the two sides discussed all the important points and a decision was made. A relatively small number of ITAs contain an amendment clause (around 15%).