A Disengagement Letter is essential when formally ending a professional service relationship in Singapore. It serves as a crucial risk management tool and provides clear documentation of the termination process. The letter should comply with Singapore's legal framework, particularly the Legal Profession Act and related regulations. When drafting a Disengagement Letter, professionals must address key elements including the reason for termination, outstanding matters, final billing, and document handling procedures. This document helps protect both parties by clearly defining the end of professional obligations and responsibilities.
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Key Requirements PROMPT example:
Disengagement Letter
"I need a Disengagement Letter to terminate professional services with our accounting client ABC Corp due to conflict of interest, ensuring compliance with Singapore regulations and including provisions for transferring ongoing tax matters to their new service provider by March 2025."
1. Client Identification: Clear identification of the client and matter reference, including client name, matter number, and date
2. Reason for Disengagement: Clear and professional explanation of the grounds for terminating the professional relationship
3. Effective Date: Specific date when the disengagement becomes effective and timeline for transition
4. Outstanding Matters: Summary of any pending work, immediate deadlines, or critical dates the client should be aware of
5. Final Billing: Statement regarding final fees, expenses, and payment arrangements
1. Transfer of Files: Instructions for transferring files to new counsel, including timeline and process for file transfer
2. Ongoing Court Matters: Details of any active court proceedings and immediate actions required by the client
3. Document Retention: Information about the firm's document retention policy and procedures for requesting documents in the future
1. Final Invoice: Detailed billing statement for all services rendered up to the date of disengagement
2. File Inventory: Comprehensive list of all documents being returned or transferred to the client or new counsel
3. Acknowledgment Form: Form for client to acknowledge receipt of the disengagement letter and understanding of its terms
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