A Business Proposal Letter is a document that sets out the business relationship between a client and a business. This letter serves as an agreement between the two parties on the terms of their engagement. This includes details on the services being offered, client responsibilities, deadlines and compensation. In addition, the document outlines the nature and limitations of the services being provided.
This letter is generalised and is best suited for businesses that need a general proposal template sent out early in a business relationship. As a company providing services, a proposal letter will help establish transparency and understanding in your relationship with a client. Having a set of defined expectations and terms to which both parties are satisfied with is highly advantageous. This will help limit the potential for disputes and misunderstandings to arise with your client in the long term. An proposal letter in effect acts as a contract between the two parties and is considered a legally binding document.
Use this Proposal Letter If:
You’re entering an agreement to provide services to a client
You want to establish the terms and expectations of the relationship prior to commencing
What does this Proposal Letter Cover?
Purpose and scope of services
Period of engagement
Terms of trade
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