Writing Business Engagement Letters

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When it comes to the legal process, engagement letters are an essential part of the package. These documents serve as agreements between a lawyer and their client, laying out exactly what services will be provided, any fees that may be involved, and more besides. It’s a crucial step in protecting both parties’ rights, interests, and understanding of their respective roles.

At Genie AI we understand how important an effective engagement letter can be - that’s why we provide free templates for anyone seeking to draft and customise high-quality legal documents without paying a lawyer. Our community template library is powered by millions of data points which teach our AI system what makes up a market-standard engagement letter - giving you the confidence you need to produce one with accuracy and efficiency.

Engagement letters are beneficial for multiple reasons; they help establish an agreement between lawyer and client before any work commences; clarify what services will (or won’t) be included in their scope; protect the rights of the lawyer; and safeguard interests of the client - making sure they understand what they’re getting from their legal professional at a fair price.

It’s important to remember that using this guide doesn’t require you to have a Genie AI account - all we want is to help ensure everyone has access to quality document templates at no cost. To get started on your very own engagement letter, simply read on below for our step-by-step guidance or access our template library today!

Definitions (feel free to skip)

Recipient: Person or entity that the letter is addressed to.
Tone: Attitude or feeling expressed in a piece of writing.
Overview: Brief summary or description of a situation.
Benefits: Something that provides a positive outcome or advantage.
Offerings: Goods or services that are available for sale.
Agreement: Formal contract or understanding between two or more parties.
Timeline: Sequence of events arranged in chronological order.
Payment Terms: Conditions and rules related to the payment of a debt or service.
Gratitude: Feeling of appreciation or thankfulness.

Contents

• Establishing the Purpose of the Letter
• Clearly state why you are sending the letter and the desired outcome.
• Establishing the Tone of the Letter
• Use a tone that is professional and respectful.
• Introducing Yourself and Your Business
• Provide a brief introduction of yourself and your business, including relevant contact information.
• Explaining the Benefits of Your Offerings
• Explain the advantages of your services or products and how they could benefit the recipient.
• Outlining Your Offerings
• Explain what services or products you are offering.
• Establishing Expectations
• Set expectations for both parties in regards to the agreement.
• Setting a timeline for Engagement
• Establish a timeline for the agreement and any related deadlines.
• Establishing Payment Terms
• Include any relevant payment terms or conditions.
• Expressing Gratitude
• Show your appreciation for the client’s consideration of your offer.
• Requesting a Reply
• Request a prompt reply from the recipient.
• Closing the Letter
• Provide a polite closing and thank the recipient for their time.

Get started

Establishing the Purpose of the Letter

• Brainstorm the purpose of the letter, the main goal of the communication, and the desired outcome.
• Develop an outline of the content of the letter that is tailored to the purpose.
• Craft the opening sentence to clearly articulate the purpose of the letter.
• Confirm that the purpose of the letter is adequately established and conveyed.

How you’ll know when you can check this off your list and move on to the next step:

• When you have an outline for the letter that clearly states why you are sending the letter and the desired outcome.

Clearly state why you are sending the letter and the desired outcome.

• Outline the key reasons why you are writing the letter, such as introducing your business, providing a proposal, offering a request, or thanking the recipient
• Describe the desired outcome of the engagement letter, such as a reply, a signature, or further action
• Make sure that the purpose of the letter is clear and concise
• When you are done, you will know that the purpose of the letter is established and the desired outcome is clear and understood by the recipient

Establishing the Tone of the Letter

• Read the letter from the recipient’s perspective to ensure the tone is professional and respectful
• Use a formal, polite language appropriate for the recipient
• Ensure the tone of the letter is consistent with the purpose of the letter
• Avoid using overly technical language and jargon
• Check that the tone of the letter is not too casual or too formal
• Proofread the letter to ensure the tone is appropriate
• When the tone of the letter is established, you can move on to the next step.

Use a tone that is professional and respectful.

• Use appropriate grammar, spelling and punctuation.
• Avoid using slang, jargon, and abbreviations.
• Address the recipient in a polite manner.
• Choose words that are clear, concise, and friendly.
• Refrain from using overly formal language.
• Avoid using humor or sarcasm.

When you have written your letter in a professional and respectful tone, you can check this step off your list and move on to the next step.

Introducing Yourself and Your Business

• Begin the letter with a formal salutation, such as “Dear [Recipient Name]”
• Introduce yourself and your business, including any relevant contact information like phone number, email address, and website
• State why you are writing the letter and the purpose of your engagement
• Provide a detailed description of the services your business provides
• Be sure to include any relevant credentials or certifications
• End with a formal closing such as “Sincerely,” followed by your name and contact information

Once you have included this information in your letter, you can move on to the next step of your guide.

Provide a brief introduction of yourself and your business, including relevant contact information.

• Introduce yourself. Write a brief paragraph about yourself and your background. Include any relevant qualifications or experience.
• Introduce your business. State the name of your company, and provide a brief description of what it does.
• Include contact information. Provide an address, telephone number, email address, and website for your business.
• You can check this off your list when you have included all the necessary information about yourself and your business in the introduction.

Explaining the Benefits of Your Offerings

• Explain the benefits of your services or products in terms of how they can help the recipient achieve their goals.
• Focus on the value that your services or products offer, rather than details about the product or service itself.
• Provide specific examples of how your offerings can help the recipient.
• Describe the unique features of your services or products and how they can be beneficial to the recipient.
• Explain how your services or products can make the recipient’s life easier, more successful, or more enjoyable.

Once you have included all of the necessary information, you can move on to the next step.

Explain the advantages of your services or products and how they could benefit the recipient.

• List out the advantages and benefits of your services or products
• Explain how they could benefit the recipient
• Provide concrete examples when possible
• Ask yourself if the recipient will understand the advantages and benefits you’re offering
• Make sure the language used is clear and concise
• Check that you’ve explained the advantages and benefits in a way that will create interest in the recipient
• When you’re satisfied that you’ve conveyed the advantages and benefits of your services or products, you can move on to outlining your offerings.

Outlining Your Offerings

• Research the services or products you are offering and make a list of all the features and benefits of each
• List the features of each service or product in a clear and concise manner
• Include any additional features your competitors do not offer
• Highlight the key features that are most important to the recipient
• List the cost of each service or product and any additional charges
• List any discounts or promotions that you are offering
• When you have finished outlining your offerings, review them to make sure they are clear and complete
• When you are confident that your offering is complete, you can move on to the next step.

Explain what services or products you are offering.

• Describe the services or products you are offering in detail.
• Include how the services or products will benefit the recipient.
• Make sure to include the length of the agreement, any associated costs, and any deadlines.
• Once you have finished outlining the details of your offering, you can move on to the next step.

Establishing Expectations

• Determine a timeline for deliverables and/or payment.
• Agree on any terms or conditions for the services or products offered.
• Outline the scope of responsibilities for both parties.
• Include any additional expectations that need to be met.
• Specify any rules or regulations that apply to the agreement.
• Draft the engagement letter and have each party sign it.

Once you have determined the expectations and outlined them in the engagement letter, you can check this step off your list and move on to setting expectations for both parties in regards to the agreement.

Set expectations for both parties in regards to the agreement.

• Make sure both parties understand the terms of the agreement, including length of the agreement, payment terms, any deadlines, and the specific services you will be providing.
• Clear communication is key, so discuss any expectations you have and make sure that both parties agree.
• Outline the timeline for the agreement, including any deadlines or milestones that need to be met.
• Create a document that both parties can sign to indicate their agreement and understanding of the expectations.
• Once both parties have signed the document, you can move forward with the agreement.

Setting a timeline for Engagement

• Set a timeframe for the agreement and any related deadlines
• Consider the length of the agreement, the milestones that need to be reached, and any potential changes that must be made
• Make sure to include an end date when the agreement will officially end
• Establish a timeline for both parties to follow and include any specific deadlines or milestones that must be met
• Clearly outline when payments or other deadlines must be met, and the consequences for not meeting them
• When the timeline is agreed upon, put it in writing and get both parties to sign off on it
• Once the timeline has been set and agreed upon, mark it off your list and move on to the next step.

Establish a timeline for the agreement and any related deadlines.

• Set a timeline for the agreement, including a start date and completion date.
• Note any related deadlines that need to be met throughout the agreement.
• Decide if deadlines will be flexible depending on the circumstances.
• Include any deadlines in the engagement letter.
• Once the timeline and deadlines have been established, you can check this off your list and move on to the next step.

Establishing Payment Terms

• Outline the payment terms for the agreement, such as when payments are due, the payment method, and any late payment fees.
• Specify the currency of payment and how payments should be made (e.g., wire transfer, check, etc.).
• Include any discounts that may be available for early payment.
• Indicate the terms for any deposits, if applicable.
• Provide information on any refunds or returns policy.
• When complete, review and edit the payment terms to ensure accuracy and completeness.
• Once the payment terms are finalized, you can move on to the next step.

Include any relevant payment terms or conditions.

• Include payment terms in the letter, such as when payment is due, any late fees that may apply, and how payment should be made.
• If the payment is due on a certain day, make sure to express that in the letter.
• If you are providing goods or services on credit, include information on when the payment is due and any additional fees that may apply for late payment.
• Specify whether payment should be made by check, money order, credit card, or other methods.
• When you have included all relevant payment terms and conditions, you can move on to the next step.

Expressing Gratitude

• Express your appreciation for the opportunity to work with the client.
• Thank the client for taking the time to consider your offer.
• Mention any specific reasons why you value their consideration.
• When you have finished expressing your gratitude, you can check this step off your list and move on to the next step.

Show your appreciation for the client’s consideration of your offer.

• Thank your client for taking the time to consider your offer.
• Make sure to include a sentence or two emphasizing your appreciation.
• Make sure to use a polite and professional tone throughout your letter.

Once you’ve thanked your client and demonstrated your appreciation, you can move on to the next step.

Requesting a Reply

• Include a statement asking for a prompt response to your offer
• Make sure to provide clear information on how to reply, such as contact information
• Suggest a specific timeline for when you expect a response
• Include a polite reminder that you are looking forward to hearing from them soon
• Once you have received a response, you can move on to the next step in the guide.

Request a prompt reply from the recipient.

• End the letter by stating the desired response and timeframe in which it is expected.
• Ask the recipient to reply in writing as soon as possible to confirm they understand the request.
• Provide information on how they should respond, such as via email or regular mail.
• State that you look forward to hearing from them and thank them for their time.
• You can check this off your list when you have successfully requested a prompt reply from the recipient in the letter.

Closing the Letter

• Close the letter with a phrase such as “Sincerely” or “Best regards.""
• Sign the letter with your name, title, and contact information.
• Include a copy of the document you are sending with the letter.
• Address an envelope with the recipient’s name and address.
• Place the letter and any other enclosures in the envelope and seal it.
• Mail the package.

When you can check this off your list and move on to the next step:

• Once you have addressed the envelope, placed the letter and enclosures in it, sealed it, and mailed it, you can mark this step as complete and move on to the next step.

Provide a polite closing and thank the recipient for their time.

• End the letter with a closing such as “Sincerely”, “Regards”, or “Best” followed by a comma.
• Sign the letter in blue or black ink and type your name underneath.
• Include a postscript thanking the recipient for their time and consideration.
• Proofread the letter one last time to make sure it is error-free.

How you’ll know when you can check this off your list and move on to the next step:

• When you have included a polite closing, signed the letter, added a postscript, and proofread the letter thoroughly, you can check this off your list and move on to the next step.

FAQ:

Q: Does the US require a formal business engagement letter?

Asked by Emily on April 21st, 2022.
A: In the US, it is not required to have a formal business engagement letter, although it is often beneficial to do so. In some cases, there may be industry standards or specific legal requirements that require you to have a formal business engagement letter. It is always best to check with your industry regulator, or local legal authority, regarding the rules and regulations in your specific jurisdiction.

Q: How do I create a business engagement letter?

Asked by Jacob on May 1st, 2022.
A: Creating a business engagement letter is not difficult. Generally speaking, you will want to include the names and addresses of both parties involved in the agreement; a clear and concise statement of the services to be provided; any applicable deadlines or dates of completion; payment terms; and any other relevant provisions. Additionally, you will want to make sure the letter is legally binding and that it adheres to all applicable laws in your jurisdiction.

Q: What should I include in a business engagement letter?

Asked by Emma on June 15th, 2022.
A: Generally speaking, you will want to include the names and addresses of both parties involved in the agreement; a clear and concise statement of the services to be provided; any applicable deadlines or dates of completion; payment terms; and any other relevant provisions. Additionally, you may also want to include details about confidentiality, non-disclosure agreements, and other contractual obligations that may be necessary for your particular business engagement.

Q: What is an example of a business engagement letter?

Asked by Joshua on July 4th, 2022.
A: A business engagement letter should clearly state the purpose of the agreement between two parties as well as any applicable deadlines or dates of completion. Below is an example of a business engagement letter:

Date: [date]

From: [Name & Address], [Company Name]

To: [Name & Address], [Company Name]

Re: Business Engagement Letter

This letter is written to confirm our agreement regarding [description of services], which will take place between [date] and [date].

The following are details of our agreement:
[List each detail here.]

Payment Terms:
[List payment terms here.]

Confidentiality Agreement:
[List confidentiality provisions here.]

Signature: __________

Signature: __________

Q: How do I format a business engagement letter?

Asked by Noah on August 10th, 2022.
A: Generally speaking, when formatting a business engagement letter you should include the following information at minimum: date; from (name and address); to (name and address); subject line; body (which should include details about services being provided, payment terms and confidentiality provisions); signature line. Additionally, if there are any other provisions that are necessary for your particular agreement then these should be included as well. The formatting should be neat and easy to read with clearly labeled sections for each provision.

Q: Is it necessary to have a lawyer review my business engagement letter?

Asked by Madison on September 2nd, 2022.
A: It is always best practice to have a lawyer review your business engagement letter before signing it as they can provide valuable advice regarding legal requirements in your jurisdiction which may be applicable to your agreement. Additionally, they can ensure that all provisions are legally binding and that all relevant laws are being adhered to.

Q: Are there differences between US law and EU law when writing a business engagement letter?

Asked by Ava on October 7th, 2022.
A: Yes, there are some differences between US law and EU law when writing a business engagement letter. Generally speaking, US laws tend to be more lenient than those in the EU with regards to contract formation and enforcement. In addition, certain EU countries may have specific regulations regarding certain aspects of contract formation such as data protection or consumer protection laws which may not exist in the US. It is always best practice to be aware of these differences when drafting your agreement so that all applicable laws are being followed.

Q : Are there different guidelines for writing a business engagement letter in different industries?

Asked by William on November 22nd, 2022.
A: Yes, there can be different guidelines for writing a business engagement letter depending on the industry you are operating in as certain industries may have their own specific regulations or requirements which must be adhered to when drafting an agreement. It is always best practice to familiarize yourself with any industry-specific guidelines so that all relevant laws are being followed when drafting your agreement.

Q : What language should I use when writing my business engagement letter?

Asked by Olivia on December 1st, 2022.
A: It is important to use language that is clear and unambiguous when drafting your agreement so that both parties understand their obligations under the contract without any confusion or misunderstanding. Additionally, it is important to use language that clearly states all relevant information such as payment terms and deadlines so that there is no confusion moving forward with regards to expectations or responsibilities under the contract.

Q : Is it necessary for both parties involved in a business engagement letter to sign it?

Asked by James on January 3rd 2022.
A: Yes, it is necessary for both parties involved in a business engagement letter to sign it in order for it to be legally binding and enforceable under contract law in most jurisdictions. It is also important that both signatures are accompanied by date stamps so that there can be no confusion regarding when each party signed the agreement moving forward if needed for enforcement purposes at any point down the line.

Q : Is there anything else I need to consider when writing my business engagement letters?

Asked by Abigail on February 9th 2022.
A: When writing your agreements it is important not only consider all relevant laws but also industry standards which may apply such as those governing professional conduct and ethics codes which could affect how you carry out certain activities related to performing services under your agreements such as consulting or advising services related activities governed by codes such as ABA Model Rules of Professional Conduct or UK Solicitors Regulation Authority Code of Conduct etc… Additionally you should consider any other relevant information related specifically to your particular agreement such as intellectual property rights ownership etc…

Example dispute

Suing for Breach of Contract based on an Engagement Letter

• Plaintiff may prove breach of contract by showing that the other party did not fulfill the terms of the engagement letter.
• The plaintiff must show that they had a valid contract and that the defendant breached it.
• The plaintiff must show that they suffered damages as a result of the breach.
• The court may look to the engagement letter to determine the parties’ rights, obligations, and the scope of the agreement.
• The plaintiff may be able to recover damages for their losses, legal fees, and other costs associated with the breach of contract.
• The parties may be able to reach a settlement if one party is willing to offer the other financial compensation in exchange for satisfaction of the terms of the engagement letter.

Templates available (free to use)

Chapter 7 Individual Bankruptcy Engagement Letter
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Estate Planning Engagement Letter For Unmarried Client Flat Fee Arrangement
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Investment Bank Engagement Letter Pe Auction Sale
Non Engagement Letter To Plaintiff Employment

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