How to Write a Letter of Undertaking: A Step-by-Step Guide

Introduction to Writing a Letter of Undertaking

A letter of undertaking is a legal document that outlines the terms of a business agreement, setting expectations and responsibilities for both parties involved. This guide will help you write a comprehensive, formal letter of undertaking that will ensure clarity and professionalism in your business dealings.

Method 1 of 3: Including Important Information

1. Cover any dates and monetary agreements with the other party: Start by including any financial terms agreed upon in the agreement. If you are hired to do a 6-week project at a rate of 23 per hour for 40 hours per week starting on August 15, 2019, make sure to clearly state these terms. Also, detail any incidental costs or fees that are to be covered by either party, such as transportation or supplies.

Example:

Financial Terms: Hourly rate of $23 for 40 hours per week. Total project duration is 6 weeks, starting on August 15, 2019. Incidental fees, including transportation, are to be covered by the recipient, with a cap of $500.

2. Outline any intended outcomes of the project: Clearly state the main duties and scope of the project, ensuring that both parties are on the same page. This list should include detailed tasks and expected outcomes to prevent any misunderstandings in the future.

Example:

Project Outcomes: The painter will complete the interior and exterior walls of the house, including two coat rooms and all trim work. The project is expected to be completed within 6 weeks.

3. List any conditions of termination: Both parties should have the right to terminate the agreement. List any specific conditions that would lead to ending the project early, such as unexpected costs, unreasonable delays, or any violations of the terms set out in the letter.

Example:

Conditions of Termination: Either party has the right to terminate the agreement if the other party violates the terms of the contract, such as being unable to complete the work in a timely manner or failing to pay on time. If the total budget exceeds the agreed amount, the project can be terminated by either party.

Method 2 of 3: Setting the Tone of the Letter

1. Use a formal tone throughout the letter: Despite the relationship with the recipient, it is important to maintain a professional demeanor. Address the recipient by their full name and title, and avoid any informal greetings or phrases. Be direct and get straight to the point without any unnecessary pleasantries.

Example:

June 5, 2023

John Doe, Project Manager

123 Business Street

Anytown, CA 12345

Dear Mr. Doe,

Attached is the letter of undertaking for the project we agreed to commence on August 15, 2019. Please review the terms and let us know if they are satisfactory.

Best regards,

John Smith

Owner of Smith Paint Services

2. Keep it brief at 1-2 paragraphs: Given that the terms have already been discussed and agreed upon, the letter should simply restate these terms for clarity. Aim for around 1-2 paragraphs to cover all essential information.

Example:

June 5, 2023

John Doe, Project Manager

123 Business Street

Anytown, CA 12345

Dear Mr. Doe,

I am pleased to provide the letter of undertaking for the project we agreed upon. The scope of the work includes painting the interior and exterior of the house. The contract includes an hourly rate of $23 for 40 hours per week, totaling 6 weeks of work. If any additional costs arise, they will be covered by the recipient with a cap of $500. The project is expected to be completed by the end of September 2019.

Best regards,

John Smith

Owner of Smith Paint Services

3. Avoid jargon and use clear language: Although the letter is formal, it should be written in simple, understandable language. Jargon or overly complex language can detract from the professionalism and clarity of the document.

Method 3 of 3: Formatting and Proofreading a Letter of Undertaking

1. Use Arial or Times New Roman in an 11- or 12-point font: Stick to standard fonts and sizes to ensure readability. Times New Roman is often the default choice in business writing.

2. Place the senders contact information at the top left side of the page: Input your own address or that of your business. This should include your name, street address, city, and zip code.

Example:

May 1, 2023

123 Main Street

Anytown, CA 12345

John Smith

Owner of Smith Paint Services

3. Date the letter underneath the senders information: Place the date exactly under the sender's information, leaving a space between the two blocks.

4. Address the letter to the recipient under the date: Leave a space between the date and the recipient's address. Include the recipient's name and address in full, followed by a salutation such as "Dear Mr. Doe" or "Dear Sir/Madam."

5. Use a closing and type your name underneath your signature: Common closings include "Sincerely," "Best regards," or "Yours faithfully." While it's tempting to send a digital signature, it's best to sign the document physically for legal validity.

Example:

June 15, 2023

123 Main Street

Anytown, CA 12345

John Smith

Owner of Smith Paint Services

June 15, 2023

123 Business Street

Anytown, CA 12345

Dear Mr. Doe,

Sincerely,

John Smith

Owner of Smith Paint Services

6. Proofread your letter before sending it: A letter of undertaking is a legally binding document, so it is crucial to proofread for any spelling or grammar mistakes. Ensure that all important information is included and that the letter follows the format of a professional business letter.

By following these steps, you can create a comprehensive and professional letter of undertaking that outlines the terms of your business agreement in a clear and legally binding manner.