What is a side letter?

A side letter is a document that is separate from the main contract or agreement between two parties, which includes additional terms, conditions, or agreements that are not included in the original contract. Side letters are often used to address specific issues or concerns that arise during the negotiation process or after the main contract has been signed.

Side letters are typically used in business transactions, such as joint ventures, partnerships, or supplier agreements, to clarify specific details or arrangements that are not included in the main contract. They may cover topics such as pricing, payment terms, delivery schedules, confidentiality agreements, or dispute resolution procedures.

It is important to note that side letters are legally binding documents and should be carefully reviewed and negotiated by both parties before signing. Any changes or additions made in a side letter should be clearly outlined and agreed upon by all parties involved to avoid any misunderstandings or disputes in the future.