A contract proposal letter is a letter which outlines the terms and conditions of a contract to be established between two parties. The letter must be written in a courteous and humble tone but the fact must be clearly mentioned so that there is no room for any misunderstanding. A contract proposal letter can of many kinds depending on what the nature of the contract is.

Sample Contract Proposal Letter:

John Roe,

Chief Executive Officer,

Delta Food Company,

New York.

Subject: Contract for supply of produce to “The Sushi Bar”.

Respected Sir,

This is to inform you that our contract (number: 7362476) outlining your agreement to supply raw produce [vegetables, fruits and fish, meat] to us, that is, The Sushi Bar, a restaurant on 56B Madison Avenue, New York is legally valid up to a year. This contract, framed today, the 24th of April, 2011 will be valid till 23rd April, 2012. Certain important considerations are as follows:

  • Our annual payment to you of $40000 has been formulated. An advance of $2000 has been made to your account through the medium of a cheque (no.3478473). The remainder will be paid in installments at the end of every month for the duration of the year.
  • This contract s legally binding and by agreeing to it, you also agree that any lapse in quality of the produce u send us is completely and unequivocally your responsibility.

We hope to continue the wonderful working relationship we have had over the years. Thanking you,

Jack Gill,

Head of Operations,

The Sushi Bar

New York.