if you want to learn how to write a contract letter, you’ll first need to understand the purpose of the letter, along with the other party involved in the contract. for example, the contract letter should not leave any room for negotiation, as the new employee should be able to read the contract and fully understand his or her rights. another example of when you might want to write a contract letter is for a home improvement project. the base salary is also another key component to include in the contract letter, as this could be different if you hire a non-exempt employee. also ensure that you are clear as to how many pto days the employee has, and include whether or not the employee will be off from work on certain holidays. for example, it might be a good idea to first identify the nature of the project.