A contract letter is a document drafted to someone who will be completing work for you, notifying the person that he may begin work under certain terms. You might write a contract letter to a home improvement contractor you intend to hire to do work before the exact terms of the agreement have been established. Or you might write to a subcontractor for a particular job, allowing him to begin work even though you haven't had time to work out the fine points of your agreement.

Sometimes contract letters also represent an entire contract agreement between two parties. You should think through your intentions for the contract letter before you sit down to draft it.

As is the case with all contracts and letters of intent, it is always a good idea to have it reviewed by an attorney before signing.

1. Begin with the Date and the Address of the Other Party

Place today's date at the top of the contract letter and address the letter to the individual with whom you are entering the agreement.

2. Start with the Basic Details of the Planned Work

Write a first paragraph stating that you are hiring the individual, the position to which you are appointing her, where the work is to be completed, the amount to be paid and the dates of the job. Because a contract letter is often preliminary to any contract negotiations or formal agreements, the exact details of the job may not be available. If you don't have all the details of the agreement, simply leave them out of the contract letter.

3. Include Special Stipulations

Include any special notations in the second paragraph of the contract letter. This may include the number of hours the worker is expected to work per day, the number and lengths of any breaks, any benefits available to the worker and any important stipulations that are important to note.

4. State Whether There Will be a Further Agreement

State that the contract letter represents the entire agreement between the two parties, if that is the case. Also state that the contract letter is a binding legal document but that a more detailed contract will be created between the two parties at a later point. Do this if the contract letter is meant to be a preliminary document to get work started before a formal contract is drafted.

5. Create an Area for Signatures

Print a statement at the end of the contract letter that states that the original letter must be signed by the worker and returned to a specific office or location by a particular date and time for the contract letter to be enacted. The worker's signature confirms that the worker agrees to the terms of the contract letter prior to beginning work.

6. Sign and Date the Contract Letter

Sign the bottom of the contract letter, and type your name, your title, today's date and your affiliated organization, if applicable, underneath your signature. Include blank lines for the worker to sign and date the letter.