Letters of engagement are mandatory. On accepting an appointment, the practitioner must send the client a letter of engagement. This forms the basis of a contractual relationship between the practitioner and the client.
The content of an engagement letter often includes important details such as the scope of services to be provided, fees or billing arrangements, confidentiality clauses, dispute resolution mechanisms, and any other relevant terms agreed upon by both parties.
The service provider typically prepares the Letter of Engagement, be it a law firm, accounting agency, consultancy, or any professional offering services.
Who Prepares a Letter of Engagement? An engagement letter is drafted by the company rendering the service, often with the help of a lawyer. It is than presented to the client, and both parties must sign in order for it to be legally binding.
For an engagement letter to be binding, there must be agreement to the terms on both sides. The engagement letter is drafted and, in most cases, signed by the firm, therefore there is clear evidence of the agreement of the contents of the letter on the firm's side.
Certified Mail requires a signature upon delivery, which can be requested by the sender in order to check that the letter has been delivered to the right person.
The final component of a formal letter is your signature. Include your full name and job title if relevant, followed by your wet signature and printed name.
An engagement letter is drafted by the company rendering the service, often with the help of a lawyer. It is than presented to the client, and both parties must sign in order for it to be legally binding.
Add the client's name and address beneath the date. Subject line. Clearly state the purpose of the letter. Introduction. Begin with a polite greeting, such as “Dear Client's Name.” ... Scope of services. Objectives. Responsibilities. Fees and payment terms. Duration of engagement. Confidentiality clause.
We are pleased to accept the instruction to act as your bookkeeper/accountant and we are writing to confirm the terms of our appointment. The purpose of this letter is to set out our terms for carrying out the work and to clarify our respective responsibilities.