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Engagement letters - Clauses for cessation of your practice

I'm a new business that is preparing a letter of engagement for a new client.

I have worked in practice for over 12 years before going alone and have never had this come up before despite the thousands of engagement letters I have prepared for my numerous bosses over the years.

My prospective client has asked for a clause in case I decide to cease trading that I stay on until he finds a suitable replacement. I don't have an issue on this at all, its prudent for the client to want to feel he is covered as I am a very new business but wondered if anyone else had come across this before and how they would word such a clause?

Any help or opinion  greatly appreciated.

Martin

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17th Feb 2012 19:22

Suitable replacement

I don't think you can leave it as open ended as that.

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Continuity agreement

Hi Martin - it is usual (compulsory if you're regulated) to have a continuity agreement with another firm to step in, in the event you vanish and I have to say this is the best way to give you, your estate and your clients some degree of comfort.  

Having said that, considering that most engagements, in essence, are only as good as this year's work, I agree your client is a little out of the ordinary.  I can imagine you signing the clause and then them asking, "Ok what if you die?"

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