What's the difference between a "contract" and a "letter agreement"?
June 10, 2004 8:55 AM Subscribe
FreeLegalAdviceFilter: What's the difference between a "contract" and a "letter agreement"?
posted by ook to Law & Government (6 answers total)
I was recently asked to sign a non-disclosure agreement which had many unusually sharp, pointy teeth. I'm not going to sign it, for a variety of reasons which would be obvious if I posted it here, but one thing in particular got me wondering:
Most NDAs I've seen have been in the form of a traditional contract, to be signed by both sides, and which describe the arrangement as between the Disclosing Party and the Receiving Party.
This one, though was a "Letter Agreement", to be signed only by me, which was set in terms of an arrangement between the Company and You (i.e. me) -- and which covered only restrictions and obligations on my part, none on the company.
So is it just that this was a particularly one-sided contract? Or is there something inherently lopsided about the form of a letter agreement? If I eventually end up signing a modified version of this NDA, should I push for it to be a more traditional contract instead of a letter agreement, or does that part not really matter?