Final answer:
An engagement letter is a document that outlines the terms and conditions of a professional engagement between a client and a service provider in the business field. It includes an introduction, scope of work, fees and payment terms, confidentiality, term and termination, and dispute resolution.
Step-by-step explanation:
An engagement letter is a document that outlines the terms and conditions of a professional engagement between a client and a service provider in the business field.
The contents of an engagement letter typically include:
- Introduction: This section provides a brief overview of the engagement and states the purpose of the letter.
- Scope of Work: This section outlines the specific tasks and responsibilities of the service provider.
- Fees and Payment Terms: This section specifies the fees charged by the service provider and the payment terms.
- Confidentiality: This section addresses the confidentiality of the client's information and any restrictions on its use.
- Term and Termination: This section defines the duration of the engagement and the circumstances under which it can be terminated.
- Dispute Resolution: This section outlines the process for resolving any disagreements or disputes that may arise during the engagement.
An engagement letter is an important business document that helps establish clear expectations and protect both the client and the service provider.