A formal document, but not necessarily a contract, that gives assurance from one party to another to perform an obligation is known as an undertaking letter or a letter of undertaking. It is primarily utilized in the business world to perform certain tasks or work for a company in exchange for payment.

An undertaking letter is only effective if all parties concerned accept the terms of the letter; otherwise, the agreement is null and void. As a result, ensure that the terms and conditions are valid and acceptable when drafting the letter. An undertaking letter does not bind the parties legally in the same way that a contract does, but this changes in this circumstance. Furthermore, a letter of undertaking sample is frequently signed in good faith to reinforce the mutualism and respect between the two parties. As previously said, an undertaking letter sample may be used in a variety of situations.

Undertaking letters are used in many other scenarios as a formal way to state one’s intentions.