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Difference Between The Two Letters.

Introduction

The first letter (ATTACHMENT 1) is a letter of interpretation while the second one (ATTACHEMENT 3) is a letter of agreement. A letter of agreement requires different parties to put pen to paper on a business deal or a formal agreement. A letter of interpretation on the other hand is more focused on providing clarity on a subject or issue that has been misunderstood by an individual or an organization. When looking at these two letters there are three key areas in which they differ. These are format, composition and wording. I will look at each of these factors and try to bring out the difference between the two letters.

Format

The letter is much shorter compared to the letter of agreement. This is mainly because the letter of agreement includes details of the different entities that are party to the said business deal. Letters of agreement tend to be free flowing as seen in the attached sample while letters of interpretation which are normally modified block or modified semi-block. Apart from this, letters of interpretation rarely have closings as illustrated in the attached copy.

Letters of agreement on the other hand have a lot of closings since the different parties are required to sign so that they can confirm they were involved in the deal and agreed to it.

Composition

A letter of agreement has far more details compared to a letter of interpretation. The various parties involved most of the time get the logos included in the letter either as part of the body or at the beginning of the letter. They also have a lot of signatures and may include details like commitment, goals, co-operation, roles and responsibilities, objectives, partnership assessment and measurement system, safety and health management system, knowledge and technology transfer, initiation and termination of agreement/continued participation, modifications and changes to agreement, rights and obligations of the partners and employees, current and future plans and the signature page.

Wording

Letters of interpretation are usually specific and direct. This is because the main objective of writing the letter is to clear up certain misunderstandings that may arise due to the introduction of new rules or regulations that are required to be complied with. Most of the time, they involve issues concerned with the law or rules governing the operations of an organization. The wording is usually simple as possible so that specific audiences for example employees in an organization or members of the public can understand whatever is being communicated. As a result almost anybody can read and understand a letter of interpretation. On the other hand, the wording in letters of agreement is usually complex because it is formulated in business terms that are likely to be understood by the parties involved, lawyers or other business people.