The Engagement Letter/Proposal Template is provided in Word format so that you can prepare individual Engagement Letters/Proposals for Clients. Importantly, the Engagement Letter/Proposal Template includes particulars of the Contract that are referenced in the Terms & Conditions of Service. The effectiveness of the Terms & Conditions of Service will, therefore, be affected if you omit relevant particulars from an Engagement Letter/Proposal.
Who is Your Client?
When making any contract in business it is fundamental that the ACN and/or ABN of the Client be verified so as to identify the true legal entity (person/company) that your business is contracting with.
If the Client is a company or a sole trader, consider the need for personal guarantees (see pages 3 and 4). If the Client is a Trust, contact the Client and find out the name of the Trustee of that Trust and ensure that the Engagement Letter/Proposal is directed to the Trustee. Personal guarantees are also highly recommended when contracting with a Trustee of a Trust
Submitting Engagement Letters/Proposals
When submitting Engagement Letters/Proposals to Clients you should make it your practice to attach the Terms & Conditions of Service so that there can be no dispute about whether those terms were disclosed to the Client.
Creating Specific Purpose Engagement Letter/Proposal Templates
It is often the case that a business will use the Engagement Letter/Proposal Template to develop more than one (1) Engagement Letter/Proposal Template for specific Contracts and to make it easier for employees to prepare accurate Proposals.
Please note that care should be taken to ensure that when an Engagement Letter or Proposal is given it does not omit a Contract particular that will be relevant to a future Contract that the Engagement Letter/Proposal relates to. Preserving the consistency of references in the Terms & Conditions of Service to the particulars contained in the Engagement Letter/Proposal is essential and will avoid problems with uncertainty or ambiguity of a Contract.