The Client Engagement Letter is a crucial document used when establishing a professional service relationship under Austrian law. It serves as the foundational document that outlines the terms and conditions under which professional services will be provided, ensuring clarity and legal certainty for both parties. The document must comply with Austrian civil and commercial laws, professional regulations, and EU requirements such as GDPR. Typically used at the commencement of a new client relationship or when significantly modifying existing services, the Client Engagement Letter includes essential elements such as scope of work, fee arrangements, liability provisions, and regulatory compliance measures. It's particularly important in regulated professional services sectors where clear documentation of the engagement terms is either legally required or considered best practice.
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1. Letterhead and Date: Professional's business details, registration numbers, and date of the letter
2. Client Details: Full name and address of the client
3. Salutation and Introduction: Formal greeting and thank you for engaging the firm
4. Scope of Services: Detailed description of the professional services to be provided
5. Team and Resources: Key personnel responsible for service delivery and their roles
6. Fees and Payment Terms: Fee structure, billing arrangements, and payment conditions
7. Timeline and Deliverables: Expected timeframes and specific deliverables
8. Client Responsibilities: Required cooperation, information provision, and other client obligations
9. Confidentiality: Confidentiality obligations and information handling
10. Data Protection: GDPR compliance and data processing terms
11. Professional Standards: Commitment to professional standards and applicable regulations
12. Liability and Insurance: Limitation of liability and professional insurance coverage
13. Termination: Conditions and process for ending the engagement
14. Closing and Signature: Formal closing, signature blocks, and acceptance provisions
1. Conflict of Interest: Required when there are potential conflicts that need to be disclosed and addressed
2. Intellectual Property: Needed when the services involve creation of intellectual property
3. Sub-contractors: Include when external specialists or sub-contractors may be involved
4. International Services: Required when services cross jurisdictional boundaries
5. Anti-Money Laundering: Specific section for financial or legal services subject to AML regulations
6. Force Majeure: Optional clause for addressing unforeseen circumstances
7. Alternative Dispute Resolution: Optional provisions for handling disputes through mediation or arbitration
1. Schedule of Services: Detailed breakdown of specific services and deliverables
2. Fee Schedule: Detailed fee structure, rates, and payment terms
3. Team Structure: Detailed information about the service team and their qualifications
4. Data Processing Agreement: Detailed GDPR-compliant data processing terms if extensive personal data processing is involved
5. Service Level Agreement: Specific performance metrics and service levels if applicable
6. Professional Requirements: Specific professional or regulatory requirements applicable to the engagement
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