The first part of the letter should describe the case that counsel will handle for the client. The description must be specific enough to avoid further confusion and should specify not only the services that counsel will provide, but also the services that counsel will not provide. If the lawyer makes a particular transaction, the letter of commitment must specify, for example. B, whether the lawyer will deal with all disputes arising from the transaction. When the lawyer is dealing with a legal aid case, the letter should indicate whether the lawyer will also handle a complaint. When a lawyer negotiates with an insolvent company, counsel should indicate whether counsel will continue to handle the matter once the business has gone bankrupt. The most important document that defines the relationship between the lawyer and the client is the conservation agreement or letter of commitment. Regardless of the nature of the case, the value of the deal or the expected bonus, the written commitment agreement or a letter of preservation is an intelligent maneuver, even if it is not necessary. Clarity in the royalty provisions of a contract of engagement is essential, since so many claims for misconduct arise only if the company attempts to collect an unpaid fee.

In addition to calculating the company`s fee, the letter of commitment may include a provision for the payment of a deposit, incalculation payments or the payment of a so-called “persistent-leaved” retainer, which serves as a security guarantee. If you choose not to prepay, you should at least reserve the right to package future services after receiving a down payment or down payment. With effect as of March 4, 2002, each New York lawyer must, pursuant to a new 22 NYCRR Part 1215 entitled “Written Letter of Engagement,” begin to give each client an engagement letter written in all cases that are not covered by an exception. This article explains the requirements and exceptions to the new rule. [Editor`s note: See engagement letter, below. See also, full text of Part 1215, below] When? Section 1215.1 generally requires a lawyer to present an engagement letter to the client “before he begins to represent…┬áThis is certainly the best policy for both the lawyer and the client, as the engagement letter should clear up any confusion before they have invested both time and resources in a case. However, a lawyer may present the engagement letter to the client “within a reasonable time” in one of two circumstances: equally important: identifying tasks that are not within the scope of the undertaking. For example, if the customer asks you to do nothing, make sure the letter of liaison reflects this requirement. (“Your accountant will provide tax advice on the transaction.”) If you are considering a replacement only by an exam, the engagement letter should indicate that a new conservation agreement is required for each submission after the process.

And in every case where the performance is staged in this way, be sure to send a new engagement letter to the client when the case reaches a stage that is not within the framework of the original arrangement. In October 2001, the Counsel`s Committee recommended that the Law Society support the principle of the declaration of commitment, but proposed the following amendments: (a) the fee exemption should be increased to $5,000, (b) lawyers should be allowed to use a signed conservation agreement instead of an engagement letter; (c) engagement obligations should not be necessary for clients who have ongoing relationships. , and (d) lawyers should be allowed to submit a recommended letter after the start of a representation if circumstances made it inseable at first.