Letter contract

Letter contract,

Definition of Letter contract:

  1. Preliminary contractual document which, with or without specifying the agreed to price or amount, authorizes a contractor to begin immediately with the job or project. A letter contract obligates the customer (principal) to either prepare the final (definitive) contract within the specified timeframe, or to reimburse the contractor for costs incurred under the letter.

Meaning of Letter contract & Letter contract Definition