Sometimes when you are looking for a job or in a corporate meeting, an executive will promise you new work or relocation. Knowing that somebody on a higher level will look after your career lessens your worries, however saying it verbally is not enough. An oral agreement can easily be forgotten. That is why you have to confirm an oral agreement through a formal letter.

A confirmation letter is a formal corporate letter to remind the person about an agreement. It is also used to acknowledge the terms that you both agreed on. State the terms as far as you remembered and allow the person to notify you if there is something needs to be revised.

Attach documents if it is necessary. Be precise and straightforward in making your letter and put it in a clean paper and envelope.

Here is an example of a supplier’s letter of confirmation of an oral agreement:

SAMPLE

January 5, 2009

John Hall
President, Poe Machine Enterprises
1563 Poe Lane
Kansas City, KS 66101

Dear Sir,

I am writing this letter to confirm our conversation over the phone last December 29, 2008. According to our conversation, I will be the main office supplier of your company effectively on January 12, 2009. It will be providing you with carbon papers, staplers, pencils, point pens, paper clips and envelops. Every month, you have to pay me the amount of the supplies that you will request.

If this agreement is not of your understanding, feel free to contact me. You can call me at my office phone number at 401-309-5323 from 8:00am – 6:00pm or email me at oscarsellers@diamondpapersinc.com. You can also send me a post letter with the address on this envelops.

Thank you and I am looking forward to have business with you.

Sincerely,

Oscar Sellers
Diamond Papers Inc.

AGREEMENT TO EXTEND

DEBT PAYMENT

FOR VALUE RECEIVED, the undersigned, _ [Creditor] and _

[Company], hereby acknowledge and agree that:

1. The Company presently owes the Creditor the sum of

$_, said sum being presently due and payable.

2. In further consideration of the Creditor’s

forebearance, the Company agrees to pay said debt on

extended terms in the manner following:

_

3. In the event the Company fails to make any payments

punctually on the agreed extended terms, the Creditor

shall have full rights to proceed for the collection

of the entire balance then remaining.

4. This agreement shall be binding upon and inure to the

benefit of the parties, their successors, assigns and

personal representatives.

Signed under seal this _ day of _, 19_.

___________________________

Creditor

___________________________

Company

AGREEMENT TO COMPROMISE DEBT

FOR VALUE RECEIVED, the undersigned being a creditor of _

[Company] hereby enters into an agreement to compromise and

reduce the indebtedness due the undersigned on the following

terms and conditions:

1. The Company and the undersigned acknowledge that the

present debt due is $_.

2. The parties agree that the undersigned shall accept the

sum of $_ as full and total payment on said debt and in

complete discharge of all monies presently due,

provided the sum herein shall be punctually paid in

the manner following:

_

3. In the event the Company fails to punctually pay the

reduced amount, the undersigned creditor shall have

full rights to prosecute it claim for the total debt

due under paragraph 1 [less payments made].

4. This agreement shall be binding upon and inure to the

benefit of the parties, their successors, assigns and

personal representatives.

Signed under seal this _ day of _, 19_.

_______________________________

Creditor

_______________________________

Company