Importance of drafting an Engagement Agreement.
An engagement agreement is a contractual arrangement between parties that outlines their responsibilities. The agreement’s scope, terms, and expenses are described in detail in the letter, setting clear expectations for all parties to the agreement on the objective of an engagement agreement. An engagement agreement can be utilized in various business relationships, for example; advocate – client relationship or procurement relationship.
As an illustration section 45 of the Advocates Act allows for an Advocate and client to enter into a binding engagement agreement on payment of legal fees that would differ from the statutory mandated fee scale being the Advocates Remuneration Order.
Additionally, engagement agreements work to reduce the possibility of disputes between contracting parties by expressly laying out the obligations and expectations of the parties. However, unlike a contract it is less formal, avoids the inclusion of legal jargon but importantly it is still enforceable in a court of law.
Engagement agreements are normally drafted by the party rendering the service and subsequently followed by discussion and negotiation with other parties to the agreement.
The main advantage of Engagement Agreements is the clarity of the obligations placed on all parties. The scope of the responsibilities of all parties is expressed in the agreement negating any ambiguity in the relationship.
Common clauses in an engagement agreement include;
- Client’s Responsibilities
- Fees
- Expenses
- Confidentiality
- Due Diligence
- Exclusivity
- Term and Termination of Engagement
- Indemnification; Contribution
- Governing Law; Jurisdiction
How can we assist you?
At Netsheria International, we have an experienced team of lawyers who can offer you legal assistance in drafting compact and exhaustive engagement agreements for your business. We provide you with the largest collection of business documents and agreements at affordable costs. Please contact us for our services at info@netsheria.com or visit our website at https://netsheria.com/ for more information on our services.
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