What is an engagement letter?

An engagement letter is a formal agreement between a professional service provider and a client. It outlines the terms and conditions of the work to be performed, as well as the fees and expenses associated with the engagement. The engagement letter defines the scope of work and the responsibilities of both parties, providing a clear understanding and expectation of what will be delivered. It is an essential document that protects both the client and the service provider by establishing a clear and mutual understanding of the work and its requirements. An engagement letter is typically signed by both parties before work is undertaken and serves as a binding legal agreement.