e-Sign with Lawpath

Engagement Letter

An Engagement Letter is a document that sets out the business relationship between a client and a company.
star
star
star
star_half
star_outline
3.6 (10 reviews)
timer
Under 10 minutes
location_on
Suitable for Australia
Get 1st document free

Document Overview

An Engagement Letter is a document that sets out the business relationship between a client and a company. This letter serves as an agreement between the two parties on the terms of their engagement. This includes details on the services being offered, client responsibilities, deadlines and compensation. In addition, the document outlines the nature and limitations of the services being provided.

As a company providing services, an engagement letter will help establish transparency and understanding in your relationship with a client. Having a set of defined expectations and terms to which both parties are satisfied with is highly advantageous. This will help limit the potential for disputes and misunderstandings to arise with your client in the long term. An engagement letter in effect acts as a contract between the two parties and is considered a legally binding document. 

Use this Engagement Letter If:

  • You’re entering an agreement to provide services to a client
  • You want to establish the terms and expectations of the relationship prior to commencing

What does this Engagement Letter Cover?

  • Purpose and scope of services
  • Client responsibilities
  • Period of engagement
  • Confidentiality
  • Estimated pricing
  • Professional fees
  • Terms of trade

Frequently Asked Questions

Who needs an engagement letter? 

An engagement letter is needed in various professional fields and industries to formalise the client-service provider relationship and clarify expectations.

Examples include:

  • Legal Services

  • Accounting and Audit Services

  • Consulting Services

  • Financial Planning and Investment Services

  • Real Estate Transactions

  • Construction and Contracting Services

  • IT and Technology Services

  • Healthcare Services

  • Freelance and Creative Services

  • Nonprofit Organizations

  • Insurance Policies

When do I need an engagement letter?

Engagement Letters are commonly employed when a professional services firm is enlisted by a client for a specific task or project.

Many businesses incorporate Engagement Letters into their client onboarding process. While typically less formal than contracts, Engagement Letters hold legal validity.

When should I send an engagement letter? 

You can send an engagement letter in the following scenarios: 

  • Send an engagement letter when you onboard a new client or customer.

  • Whenever you undertake a new project or provide a new service to an existing client outlining the scope, terms, and conditions related to that project or service.

  • If there is a significant change in the scope of work, fees, or terms of the engagement

  • For ongoing or retainer-based services, at regular intervals (e.g., annually) to reaffirm the terms of the ongoing relationship.

When should I update an engagement letter? 

You may want to send an updated engagement letter in the following scenarios: 

  • If the scope of work evolves during the course of the engagement, update the engagement letter to reflect the current scope and any associated changes in fees or timelines.

  • Any changes in the terms of the engagement, including fee adjustments for clarity 

  • If there are changes in laws or regulations that affect the engagement

  • If the client requests modifications to the engagement terms or if both parties agree to certain changes, then to document these adjustments.

  • In longer-term projects with milestone achievements, consider updating the engagement letter to reflect progress and any adjustments to the original terms.

Consider reviewing and engagement letters periodically to ensure they remain accurate and relevant.

Other documents you may need:


It's never beenso easy
laptop_mac
Sign-up to a free Lawpath accountLawpath is free to join, and you get one free legal document when you sign-up. Also, you can receive unlimited e-signature requests with your Lawpath account.
folder_open
drive_file_rename_outline
Collaborate with e-Sign and SharingHaving access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.
Create unlimited legal documents and eSignatures for only $39/month.Upgrade to a Lawpath legal plan to boost your new business.
View plans & pricing
Here's what people say about Lawpath’s Engagement Letter
star
star
star
star
star
So freaking goodI have very limited knowledge about law and need some simple yet effective help. Lawpath is perfect for this!!! So grateful for them!
people
Jacob
star
star
star
star
star
Great experiance,The document was easy to use and just what i needed
people
Johnny
star
star
star
star
star_outline
Quick & easyThat was so quick and easy to create! Thank you :)
people
Private user
star
star
star
star
star
Fast quick and exactly what i was afterI will be looking at a subscription after discovering what the site has to offer
people
Private user
star
star
star
star
star
So easy to useSo easy to use. If i had a business i would surely sign up. But i just need the service for rental papers. Seamless service highly recommend
people
Private user
star
star
star
star
star
Great and very useful documentThe document is easy to create and very useful to my business.
people
Celine
star
star
star
star
star
Very easyI would have liked to edit the other parts of the documents as it was not a house yet a club house otherwise very helpful
people
Adrian
star
star
star
star
star
Excellent documentThe document was easy to create and suitable to my needs.
people
Claudia
star
star
star
star
star
Good.The document was easy to create, but will need to review and read it through to see if this will match our requirement.
people
Murthy
star
star
star
star
star
Lawpath is great for speed in signing documentsI am impressed with the quality of documents available. To have a document legally signed within minutes in the best.
people
Quegee
Powered by
Looking for more documents?
chevron_right
Privacy Policy
chevron_right
Loan Agreement
chevron_right
Cleaner Contract
search
Browse all legal documents