An engagement letter identifies the client, defines the scope of representation, states the fee arrangement and billing practices, addresses conflicts and confidentiality, and specifies terms of termination.
Some states require written agreements for contingency and certain other arrangements.
Alternative Names:
Retention Letter, Engagement Agreement
Why it Matters?
Scope definition is the provision that matters most in malpractice defense, because a claim alleging failure to advise on a matter outside the engagement fails where the letter defined the boundary. In corporate representations, identifying whether the client is the entity or also its constituents prevents the individual officer who later claims personal representation. Ambiguity in either respect is resolved against the drafter.
Frequently Confused with
Related terms
Frequently asked questions
Why does scope definition matter?
What should corporate engagements specify?
