Engagement Letter

The Engagement Letter is a document that outlines the fundamental aspects governing the relationship between a service provider and their client.

Note that this document is usually accompanied by a Service Agreement or Retainer Agreement for more elaborate and detailed provisions on the specifics of the arrangement between the parties.

Also, while this Letter of Engagement covers professional services, the Service Agreement and Retainer Agreement can be used for a broader range of services, not just professional or consulting services.

Service providers, such as lawyers or law firms, accounting officers, financial advisors, consultants, or other professionals can use this document to guide the service provider and client (the parties) on what to expect. This document outlines the following:

• Scope of Services: The engagement letter specifies the tasks, responsibilities, and deliverables expected from the service provider. This section helps manage expectations and ensures that both parties understand the nature and extent of the services to be rendered.
  
  
• Obligations of the Parties: The letter outlines the obligations and responsibilities of both the service provider and the client. The client's duties include paying the service provider's fees, providing relevant information, and other relevant commitments. On the other hand, the service provider's duties are to perform the tasks under the agreement and other necessary tasks. It is important to note that clearly defined obligations contribute to a smoother working relationship.
  
  
• Fee Structure: This document contains a detailed breakdown of the fee structure. This includes the basis for fee structure, payment terms, and any additional expenses that may be incurred.
  
  
• Duration of the Engagement: This document specifies the duration or term of the engagement. Whether it's a one-time project, an ongoing arrangement, or a retainer agreement, establishing a clear timeframe helps both parties manage their commitments effectively.
  
  
• Confidentiality Obligations: Like most legal documentation, this document includes a confidentiality obligation. This ensures that the service provider does not disclose sensitive information the client shares during the period of engagement.
  
  
• Termination Clause: If either party needs to terminate the engagement prematurely, the letter outlines the conditions and procedures for doing so. This provides a clear map for ending the service provider relationship and mitigates legal implications.

How to use this document

This document can be used by a professional who will be providing services to a client as an independent contractor and not as an employee.

After filling out this form, the document must be printed in at least two copies. The service provider and the client should sign the two copies.

If either the client or the service provider is a firm or a company, an officer of the organization should sign the document on behalf of the organization. An officer is a person in a position of authority such as a managing partner, partner, managing director, director etc.

The service provider and client must keep at least one signed copy of the document for record purposes.

Please note: Depending on the nature of the relationship, this Engagement Letter is often used at the beginning of the professional relationship, before the commencement of services.

Once the parties have signed this Engagement Letter, the parties can proceed to sign a Service Contract, a Retainer Agreement, or a more elaborate contract to provide a comprehensive provision or terms governing the relationship between the service provider and the client.

Applicable law

The general law of contract applies to this document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.