Enforceability of Engagement Letters.
Technical factsheet 174 Enforceability of Engagement Letters highlights the circumstances where the conditions in an engagement letter could be unenforceable by a practitioner but where clauses could be enforceable by a client. The factsheet states that “failure to comply with the regulations therefore may mean that, not only will the practitioner be unable to enforce payment of outstanding fees, but also that any limitation of liability included within the engagement letter would not be effective.” It is therefore important that practitioners are aware of the relevant regulations and take steps to comply with them. The regulations are:
(1) The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc Regulations 2008 (“Cancellable contracts”) and
(2) The Consumer Protections (Distance Selling) Regulations 2000 (“Distance selling contracts”).
The factsheet provides an overview of the regulations and simple flowcharts to help practitioners assess any risk and consider if any new procedures are required.