A law firm's engagement letter serves a dual purpose: it formalises the lawyer-client relationship and details the fees transparently. Professional conduct rules require the lawyer to inform the client about fees in advance, and a well-structured document protects both parties against potential future disputes over the scope of the representation or the cost of the service.
Fees can be agreed in various ways: a fixed price per matter, an hourly rate with an estimate of hours, a retainer with subsequent settlement, or a contingency fee in certain cases. The engagement letter should specify which actions it covers (claim, defence, appeals, hearings), which costs are separate (court fees, experts, agents) and at what points payments will be made. For ongoing advisory services, the monthly fee should define the number of consultations and the type of matters covered.
DealForge lets lawyers and law firms create professional engagement letters with structured fees, send them to the client with a legally valid electronic signature, and keep a digital record of the informed consent that professional rules require.