Engagement Letter: Definition And Examples (2022)

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What is an Engagement Letter?

An engagement letter is a legal document that can define the relationship between professional and client. This agreement binds the parties and outlines how the exchange of services for money will take place.

Engagement letters are commonly used by service-based companies such as law and accounting firms. Real estate agencies are another service startup type that utilizes this type of agreement.

Engagement Letter Examples

The following elements are usually included in an engagement letter:

  • Element 1. Scope of representation
  • Element 2. Agreed upon fees
  • Element 3. How disputes will be resolved
  • Element 4. How expenses will be handled
  • Element 5. How billing will take place

Check out this article about engagement letters.

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