Engagement Letters and Professional Ethics
Objectives
- Explain an engagement letter
- Discuss conflicts of interest
- Communicate ethical limits
Explanation
An engagement letter defines scope, fees, responsibilities and termination. Ethics: avoid conflicts of interest, protect confidentiality and refuse illegal requests. Costa Rican lawyers and notaries also have anti-money-laundering duties (e.g., under Law 7786 and its amendments); explain politely why you request origin-of-funds documents.
scope of work
The services included in the engagement.
“Litigation is outside the scope of work.”
conflict of interest
A situation where duties to different clients clash.
“We cannot act due to a conflict of interest.”
origin of funds
Proof of where money comes from.
“Please provide proof of origin of funds.”
anti-money laundering (AML)
Rules to prevent the use of illegal money.
“AML rules require identity checks.”
retainer
An advance payment for legal services.
“A retainer of US$1,000 is required.”
Flashcards
Match terms and definitions
scope of work
conflict of interest
origin of funds
anti-money laundering (AML)
retainer
Complete the sentences
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