Glossary
Engagement letter
An engagement letter is a written document confirming that a lawyer has been hired, outlining the scope of representation, fee arrangement, billing practices, and terms for ending the relationship.
Engagement letters and retainer agreements overlap in practice — many firms use the terms interchangeably. Strictly speaking, the engagement letter confirms the relationship and scope, while a retainer agreement may additionally cover the initial deposit and trust terms.
Professional conduct rules in most jurisdictions require fee agreements in writing for new clients. The engagement letter is your first compliance checkpoint in intake — before you do billable work or accept client funds.
A good engagement letter for small firms covers: who you represent (and who you do not), matter description, hourly vs flat fee, billing frequency, retainer amount, client communication expectations, and how either party terminates the relationship.
Send the engagement letter immediately after the client decides to proceed — same day as consultation if possible. LawNest retainer templates serve as engagement letters with e-sign fields, audit trail, and automatic storage on the matter.