Introduction
Knowing how to request for proposal for legal services through a proposal letter is key. It is a way to start a relationship on the right foot between a legal team and another company. However, when it comes to the world of law, many get overwhelmed and intimidated when choosing legal representation. The majority of the time, this fear is unwarranted and a fear of the unknown.
However, that being said, it can be a bit of a leap into the unknown to sign up for legal services. A request for proposal, legal services wise, can therefore seem like a bit of a shot in the dark for many. The true test of the legal services chosen will be when those services are needed – and only then does the true quality of the legal team show. You do not want to be in the middle of a legal mess, only then to realize the ineptitude of your law firm.
Legal proposals through a proposal letter can help to iron out such issues, however, for potential clients of legal companies. On the flip side, knowing how to write a legal proposal or proposal letter is a great way of improving a company’s chances of winning business. Given that a proposal will be the first, or at least first written, correspondence a potential client has with a firm, they are critical to get right from the beginning. It is perhaps an overused phrase, but first impressions really do count!
What is a proposal letter?
A legal proposal letter is a document that makes an offer for legal services. Importantly, a proposal letter is not a legally binding document. The proposer may withdraw their proposal at any time before it has been accepted by the potential client. That being said, the proposer should notify the client that they are withdrawing their proposal – for politeness if nothing else.
Some may ask what is the legal term for “proposal letter”. Often in the hope of giving it added gravitas. However, in our view, this is unnecessary. It does not have another technical term. A legal proposal letter will simply outline the proposed terms and conditions in the final legal proposal.
How to make a proposal letter
Knowing how to write an effective proposal letter will materially improve your chances of you or your firm winning business. In doing so you then help increase your firm’s income and bottom line, which is ultimately why the majority of us are in business. And, if a legal proposal letter is structured correctly and turned into a contract – either on a consultancy basis or otherwise – it can be agreed to exceptionally quickly.
Bearing that in mind, ensure you include the following information in your proposal letter and ensure you structure it in a way that is easy to understand. Using a clear structure can help get your point across to potential clients, making it far easier for them to understand your proposal as a whole. You do not want to miss out on otherwise lucrative accounts, just because your potential client does not understand your proposal.
- Who you are
Firstly, and perhaps most obviously, you need to write down who you are and who your firm is in the proposal letter. Outline this section as quickly as possible, but try not to miss out any details that may help persuade your potential client to sign up to your firm. So, do you have a highly diverse team? What is your experience? Saying who you are is also an opportunity to show off – as modestly as possible – about your good points.
- What your client’s problem is
While it may seem obvious to you what your client’s problem is – i.e. they need legal representation or a better legal representation team – they actually may not know their legal vulnerabilities. In the proposal letter, you need to highlight this to them in a clear way so they understand why their current situation cannot continue.
Identifying their problem is also a good opportunity for you to showcase how well you have researched them. Doing so means you will not waste their time with a meaningless proposal that does not answer their needs. Additionally, it is also flattering – and a reflection of your due diligence and professionalism. Plus, everyone likes to have their ego massaged.
- Why you can help solve that problem and how
Following identification of your potential client’s legal problem, you need to break down how you intend to solve their issue in the proposal letter. Be that simply with reliable legal counsel or to help them resolve any negative legal situation in which they have found themselves. That being said – you do not want to give them any free legal advice, so this section must strike a fine balance!
- How much your services will cost and how you structure your fees
Finally, you need to talk about money in the proposal letter. Put a price on how much solving your client’s problem may be. Your proposal letter is not binding, so your potential client may come back to you with a conditional acceptance. They may use your proposal as a starting point for negotiations with you. However, ensure that you explain your costs and fees – particularly how you structure them. It could be that you are paid on an hourly basis or as a retainer. Being as clear as possible helps to reduce any negotiation time, and also gives your client an idea of whether they are able to afford even your negotiated fees. If you have structured and written your proposal well enough, you will hopefully find they are more than willing to pay you what you want.
Overall takeaways to creating legal proposals
Legal proposals are a way for law firms and legal teams to outline their services and how much those services will cost. While some proposals will require more personalization than others, a great deal of what is included in a proposal can be standardized and repeated in future proposals. As a result, legal proposals can be created using a template as a starting point – if not totally automated and autogenerated when possible.
Is a proposal letter a legal contract?
Is a proposal letter a legal contract is a question that can be answered by determining the elements of a contract and a proposal. Contracts are written documents that contain offer(s) that are legally binding, an acceptance of said offer(s), and value/consideration to be provided. A contract must be signed by all participating parties, and the parties must be competent to contract. These are the standard elements in contracts that make them enforceable.
Although it may be complicated to determine whether an offer was provided, and acceptance of said offer given, it isn’t really difficult. However, determining consideration may be challenging. Consideration refers to the quid pro quo that is transferred between contracting parties as part of the exchange. It generally refers to the money or product/services that are exchanged during the deal.
Any written document that does not contain all the elements detailed above is not a contract—even if signed by all parties. As such, proposals, receipts, and invoices are not contracts. Only documents that contain an offer, acceptance of said offer, consideration to be received, and signatures from all parties can be called a contract.
Unilateral contracts are agreements to pay in exchange for certain performance. When undertaking business dealings, it’s best to have a licensed attorney draft all contracts. A well-written contract equitably distributes liabilities in a way that is beneficial to all contracting parties.
The “Loser Pays” Provision
Such a contract sidesteps the “American Rule” with the “Loser Pays” provision that allows victors of litigation proceedings to shift the cost of attorney fees to the loser. Such a provision enables the quick settlement of cases instead of going through the processes required for a judgment and then undergoing the challenges of actually collecting on the judgment.
An accepted and signed proposal letter is not a contract if the signature was appended for discussion purposes. Such a proposal cannot be enforced by law since it doesn’t contain the following elements:
- Mutual assent
- Consideration
- Capacity, and
- Legality.
Proposals could be unsolicited or solicited submissions by a party to buy or supply certain products or services. Unlike contractual offers, proposals are not commitments or promises. However, if a proposal is accepted by one party, the party should follow through and negotiate the creation of a legally binding contract.
In business circles, an RFP refers to Request for Proposal and may also be described as an RFQ or “Request for Quote.” Such a proposal is basically an agreement that is submitted with the hope of being signed and legally accepted.
Converting a proposal letter to a contract
Although a proposal letter can be converted into a legally-binding contract, the language of the proposal must be altered to contain all the elements of a contract. Once you instruct the party accepting the proposal in the proposal letter to date, sign, make payment, and abide by the proposal terms, it becomes a legally-binding contract.
Contracts and proposals prevent financial disputes and help to eliminate ambiguity and second-guessing. Such written documents spell out project details in order to clarify expectations and obligations to the clients.
Include as many details as possible in the proposal letter
When drafting a contract in lieu of a proposal, you should be as detailed as possible. Although legalese isn’t really necessary, you should include as many details of the project in the proposal letter as you can so that the client can have a thorough knowledge of your operating procedures.
Create a termination clause in the proposal letter
Once you agree to handle a project for the client, your marketing efforts usually slow down and you factor in the proceeds of the project into your company’s revenue projections. If the client either stops or places the project on hold, they also put a hold on your revenue generating ability. This is because you can’t earn money from the current project and you have lost other opportunities for making money by taking on the project. As such, you should be compensated for the loss. In effect, you should add a termination clause to your contract and specify the amount of compensation you want.
“Wet” signature on proposal/contracts
You should ensure that your client hand-signs all contracts and proposal letters. Such signatures affirm the validity of the document and are very beneficial during litigation proceedings.
Sample of proposal letter for legal services
LETTER HEAD
XXX
Name of Client
Address
Re: Proposal for Handling Case for ___________________________ with
NPS Docket No. ____________________ pending before the Office of the Prosecutor (City/Provincial) x—————————————————————————————————–x
Dear ___________________________ :
Greetings!
Pursuant to our meeting last ___________________________ , below is our formal proposal in handling the Less Serious Physical Injuries case you filed against
___________________________ .
- SCOPE OF LEGAL SERVICE
Our legal services shall include consultations, formal and informal conferences, sending out of demand letter, preparation of appropriate pleadings wherever applicable, legal representation in conferences or hearings whenever required, preparation of supporting affidavits, and other documents, and other services in connection with the above case normally considered routine legal and professional work not requiring extensive time involvement on our part.
- PROFESSIONAL FEE
In consideration of the abovementioned service, we shall charge the following fees:
- Acceptance Fee: ___________________________ (P________) plus 12%VAT,
FIFTY PERCENT (50%) payable upon signing of this agreement and FIFTY PERCENT (50%) upon ____________________;
- Appearance Fee: ___________________________ (P________), plus 12%VAT, per appearance of the lawyer before the ____________________;
- Pleading Fee ___________________________ (P________), plus 12%VAT, per pleading required to be submitted before the ____________________;
We wish to clarify that the fees stated above will cover only the proceedings before the Office of the Provincial Prosecutor and the ____________________ Trial Court, ____________________.
- EXPENSES
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