Document background
A Company Engagement Letter is a fundamental document used in Nigerian business practice to formalize professional service relationships. It is typically employed when a company engages external professional services such as consulting, auditing, legal, or advisory services. The document serves multiple purposes: it confirms the appointment, details the scope of work, establishes fee arrangements, and sets out the terms and conditions governing the relationship. Under Nigerian law, particularly CAMA 2020 and contract law principles, this document creates legally binding obligations between the parties. It should be carefully drafted to include all essential elements while complying with relevant regulatory requirements and professional standards. The engagement letter also typically addresses confidentiality, liability limitations, and dispute resolution mechanisms specific to the Nigerian business environment.
