PDF
Word
Letter of Commitment Template
Fill PDF Online
Fill out online for free
without registration or credit card
What Is a Commitment Letter?
A Letter of Commitment is a written statement that establishes a promise of one or two parties to adhere to specific contractual terms. This document can be used in different situations and contexts:
- Give your consent to pay back the money you borrowed or to deliver funds to your borrower;
- Confirm your continued intention to settle the debt with your lender if you are not prepared to pay the debt by the negotiated deadline but you would like to give your promise to handle existing financial troubles and pay back by some other date;
- Agree to the proposed terms of the contract you plan to sign with your counterpart - note that this letter cannot be enforceable, but it shows your goodwill and your preparedness to enter into a deal;
- Show your approval of the mortgage application and invite the prospective borrower to sign the papers;
- Describe your project to a potential sponsor - usually, a nonprofit organization or a fund. A Letter of Commitment (grant proposal) will tell the recipient that you are dedicated to your ideas and goals and describes why you would be the perfect candidate for their financial support.
You can find a Letter of Commitment template through the link below.
How to Write a Commitment Letter?
Here is how you should compose a Letter of Commitment:
- Do not write more than one or two pages - a commitment is typically short and will reference other documentation anyway. Remain formal and professional whether you are drafting a Letter of Commitment for business to begin a mutually beneficial trade with a business partner or you are borrowing money from your friend and you wish to act in good faith and promise you will hold up your end of the deal.
- Indicate the details of the agreement - for instance, name the parties to the loan, include its amount, and record the length of the contract. If you mention the original contract you have signed in the past, the commitment to the previous arrangement will be considered a formal record of the deal. However, some Letters of Commitment cannot be enforced or used as evidence in case anything goes wrong - they can be used to reassure the addressee the deal that was discussed or mentioned before still interests the letter writer and to offer certain new provisions that will be included in the contract later if the recipient agrees to them.
- If the other party must carry out their duty before your commitment can be enforced, explain their obligations. For example, the commitment becomes valid when certain files are submitted or a credit check has been accepted by one of the parties or a third party like a financial institution.
- Date and sign the letter to confirm your intention to comply with the established terms and conditions. Send this document via certified mail to obtain a receipt which is especially important if you are confirming your willingness to pay back a loan or to finance an upcoming agreement or transaction.
Related Letter Templates:
