Document background
A Due Diligence Engagement Letter is essential when engaging professional services for investigating and analyzing business, financial, legal, or operational aspects of a target entity or transaction in Pakistan. This document is typically used before mergers, acquisitions, investments, or other significant business transactions where detailed investigation is required. The letter must comply with Pakistani law, particularly the Contract Act 1872, Companies Act 2017, and relevant professional regulations. It outlines the scope of investigation, methodology, timelines, fees, and deliverables while establishing clear boundaries of responsibility and liability. The document is crucial for protecting both the service provider and the client by clearly defining expectations, confidentiality obligations, and the extent of the due diligence exercise.
