Sample of Mutual Agreement Between Two Parties

It is common to have an agreement between one person to another person, or between one company to another company. During this agreement, there should be a written statement of agreement that will manage the agreement to be formal.

That is why the person or the company shall develop a mutual agreement between the two parties.

So that the contract can be legal in the view of the law. And in case one party violating the agreement, then there will be a consequence on it.

Developing a mutual agreement might not be easy for the first time. This is a common issue that comes to a person who plans to deal with an agreement with another party. Therefore, an understanding of the agreement is something that needs to learn first.

Starting to get introduced to the description of this agreement, understand the content of the agreement, also get information on the benefit and the purpose of the agreement. For further details about this information, the following are some explanations related to mutual agreement between two parties.

The Description of a Mutual Agreement

A mutual agreement is an agreement between two parties that agree on a case that will benefit both parties. It can be an agreement for business, rental, and anything.

A mutual agreement means that there are two parties agree on the same terms and conditions that will be applied for a certain period.

Therefore, the agreement is a basic of any agreed terms between one person to another person or between one company to another company. Writing the agreement informal form is a way to help the agreement itself consider law power in case of anything happen or any parties perform such violating the agreement terms.

Purpose of Making Mutual Agreement Between Two Parties

 1. Of course, there are several major purposes on why people developing the agreement. Mainly if this is a serious agreement that can have law consequence in case of agreement violation.

Developing a written agreement means that the agreed thing is important and major. Through providing the agreement, both parties will aim to reach the following points.

 2. Manage each other to agree on the same thing together. So that each party involving in the agreement is aware of what should and what shouldn’t they do in the future during the agreement period.

 3. A mutual agreement also helps to define a clear statement about the agreement of both parties. A written agreement helps to clear each agreement point so that there will be no chance of misunderstanding between parties involving in the agreement.

 4. The agreement is also a way to help giving hard copy evidence for each party related to the contract. This agreement is to tie up two parties on similar terms and conditions that have to be accepted and performed together.

 5. Through a formal written agreement, it can help any party to get law protection in case of other parties violating the terms and condition that stated in the agreement.

The Law Point of View of the Agreement

An agreement is always being formal whenever both parties include in the agreement. Agree to sign a formal agreement and refer to the applied local law regulation. Therefore, for anyone expecting the agreement to have a powerful law.

Then it is recommending to state the agreement clearly and manage to sign the agreement by both parties involving.

Otherwise, without any signature and any written agreement, the agreed case might not have a law impact in case of violation.

That is why it is always necessary to draft the agreement in a formal statement. Furthermore, it is also better to have a witness when the agreement is signed by both parties. Either witness by a family, lawyer, or others.

This will help the agreement to be strong enough and capable to be a formal proof of evidence in case of any criminal intends to violating the contract.

The Main Content of the Agreement

 1. Preparing a mutual agreement between two parties shall manage the main content of the agreement first.

Therefore, it is necessary to understand what is the content of the mutual agreement that needs to be provided. So that the agreement is complete and also has suitable law power in terms of anything that happens in the future. Basically, a mutual agreement will have the following content.

 2. Name of the parties that held the agreement. It shall state with very clear information about the name of each party that agreed in the agreement. If possible, write the complete name, the complete address, contact number, and the ID number of each party.

 3. The agreement shall also consider the effective date starting from the start date of the contract up to the end date of the contract. So that it will state clear information about when the contract will be applied to both parties agreed in the agreement.

 4. The next thing that is important to note in the agreement is the description of the agreement itself. This part is very important and major to define. Therefore, make sure that each statement related to the agreement is written carefully and mention in the agreement.

Before drafting the contract, it is suggested to discuss the statement. And the wording to include in the agreement in terms of this explanation. So that both parties can fully agree with the terms and conditions stated in the agreement description.

 5. Another thing to mention in the mutual agreement contract is the terms and conditions in case of any party violating the contract. If possible, mention the related regulation and the consequence of this issue.

So that each party can be aware of the consequence if they violating the agreement and the terms and conditions inside it.

 6. Last, make sure that there is a signature of each party in the below part of the contract. Let them sign and put their name clearly to give a total strong law power to the agreement.

Sample of Mutual Agreement Between Two Parties

After reading the information about the main content of the agreement, now developing the agreement shall not be too difficult. However, it is common that some people might feel difficult to understand the explanation and hard to apply it in a true agreement.

Therefore, to help with the issue, it will be good to get a preliminary overview of the agreement sample. For more details, the following is a nice sample of mutual agreement between two parties.

sample of Mutual Agreement Between Two Parties



Those all some information related to mutual contract between two parties. It is now clear that the contract is something important that needs to be agreed upon by both parties and contain a law power for both too.

Therefore, in case one party cannot meet the requirement in the agreement, then the other party can sue for the law consequence. Providing the contract at the earliest can help both parties to stick to the content of its agreement and try not to violate each other.


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