Louisiana Private Investigator Licensing Practice Exam

What is required of licensed private investigators in relation to client contracts?

1. Contracts must be in simple language

2. Contracts must be reviewed by an attorney before signing

3. Contracts must be kept for three years

4. Contracts can be verbal agreements only

The correct answer is: Contracts must be kept for three years

Licensed private investigators must maintain a record of client contracts for a specified duration, which is essential for several reasons, including legal compliance, client accountability, and protection in disputes. Keeping contracts for three years allows investigators to have clear documentation of the terms agreed upon with clients, which can prove invaluable if disagreements arise or if there's a need to refer back to the specifics of services rendered. In this context, while it's important for contracts to be understandable and potentially reviewed by an attorney, the focus on the retention period emphasizes the necessity of record-keeping in the profession. Having a formal, written agreement can help mitigate misunderstandings and establish clear expectations. Also, verbal agreements are generally not sufficient in this field because they lack the legal rigor and clarity that written contracts provide. Maintaining these documents for three years ensures that investigators and clients both have access to essential information about their professional relationship.