what is an attorney retainer agreement

A typical retainer agreement should, at a minimum, contain the following:

• Your name and the name of your attorney (and his or her firm);
• The purpose for the representation (example: “to represent me in negotiating, settling or litigating the dissolution of my marriage");
• The amount of the retainer fee;
• Whether or not the retainer will be refunded if the entire amount is not used;

More items...

Full Answer

What to expect when you hire an attorney on retainer?

Dec 13, 2021 · In the legal context, a retainer agreement is an agreement between a lawyer and client in which the lawyer agrees to represent the client and provide legal services as needed. The retainer is, essentially, payment for those services. The amount of the retainer can vary depending on the circumstances. It may be a flat fee or based on an hourly rate.

What is an attorney client retainer agreement?

Jan 17, 2022 · A retainer for a lawyer is a payment based on a fee agreement between an attorney and a client. The retainer amount is paid upfront and is based on the attorney’s hourly rate or other agreed upon fee. It is important to note that the retainer is the payment made to an attorney or law firm, while the legal retainer agreement is the written fee agreement, the …

How to set up a retainer agreement?

Jun 02, 2010 · What is a Retainer Agreement? When you hire your attorney, you are creating an attorney-client relationship. This relationship creates certain rights and obligations – for both you and for your attorney. In order to make sure that both of you understand your relationship with one another, a written agreement is signed by both of you. This agreement is called a Retainer …

What to include in a retainer agreement?

Jun 25, 2018 · What is a Retainer Agreement? When hiring a lawyer, a retainer agreement can sometimes be used. This involves payment of a "retainer fee," which is basically like a down payment paid from the client to the lawyer. The payment helps secure the lawyer’s service, and shows that the client is willing to hire the lawyer.

What is the purpose of a retainer agreement?

A retainer agreement is a long-term work-for-hire contract between a company and a client that retains ongoing services from you (as a consulting business) and provides you with a stable amount of payments.Nov 7, 2020

What is the purpose of a retainer fee for a lawyer?

A retainer fee is an advance payment that a client makes to his or her lawyer before the lawyer performs any legal work for the client. It is similar to an allowance in that the lawyer is able to draw funds for various fees as the case proceeds.Jun 22, 2018

How do retainer contracts work?

A retainer agreement is a contract wherein a client pays another professional in advance for work to be specified at a later point in time. In exchange, that professional agrees to make himself available to that client for a certain number of hours within a predetermined timeframe.Jun 29, 2017

Are retainers taxable income?

Generally, if the attorney is on a cash basis of accounting, the retainer is taxable when received. The client is normally given a periodic accounting of the time and costs spent on the case. If the prepaid funds are exhausted, the client is billed for any balance due.

How are retainer fees calculated?

Calculate the Retainer Fee Multiply your hourly rate, with tax included, by the number of hours required to get your retainer fee. Any other expenses should be added to this number, such as supplies or processing and legal fees.

What should be included in a retainer agreement?

Make sure all the following details make it into your retainer contract:The amount you're to receive each month.The date you're to be paid by.Any invoicing procedures you're expected to follow.Exactly how much work and what type of work you expect to do.When your client needs to let you know about the month's work by.More items...

What are retainer clients?

Retainers are payment agreements between a client and a service provider. The client pays a specific amount of money to a business — usually monthly — and, in return, receives a set of services during that same time period.Jul 1, 2021

What is the difference between a retainer and a contract?

The retainer fee ensures that the hired service provider reserves time for the client in the future when there is a need for their services. Unlike a one-time contract, a retainer agreement is a long-term work-for-hire contract and thus can retain ongoing services.

What is retainer agreement?

What is a Retainer Agreement? When hiring a lawyer, a retainer agreement can sometimes be used. This involves payment of a "retainer fee," which is basically like a down payment paid from the client to the lawyer. The payment helps secure the lawyer’s service, and shows that the client is willing to hire the lawyer.

What happens when a contract is signed?

Once the contract is signed, it becomes enforceable under law.

Who is Jose from LegalMatch?

Jose (Jay) is a Senior Staff writer and team Editor for LegalMatch. He has been with LegalMatch since March of 2010. He contributes to the law library section of the company website by writing on a wide range of legal topics.

What is a Retainer Agreement?

A retainer agreement is a work-for-hire legal document or a service contract between a company or an individual and a client. It falls between a one-off-contract and a permanent employment contract . It allows clients and customers to pay in advance for professional services of a company or individual.

Purpose of Retainer Agreements

The purpose of the retainer agreement is to set out the duties of the parties so that all parties have an agreement on the services that will be provided, how they will be provided, when and at what cost. Retainer agreements are typically used to hire lawyers and freelancers.

How Retainer Agreements Work

Retainer agreements do not work on a single formula. However, there is a basic structure followed in all retainer agreements. One party, like a contractor, agrees to provide certain number of hours each month to the client.

Who Needs a Retainer Agreement?

A retainer agreement is widely used in the legal field. It is common for people seeking legal services or anticipating needing legal services to pay a retainer fee to a lawyer who will be available when they need them. This retainer can be an advanced payment for a monthly recurring payment to the lawyer.

Types of Professional Services Retainer Agreements

There are two types of retainer agreements that a company or individual can use:

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What is retainer contract?

There are generally three types of retainer today. A general retainer contracts the services of an attorney for a specific period. The client essentially pays for the availability of the lawyer, or at least, for their preferential attention within that time. They can expect their services when called.

What are the different types of retainer agreements?

Many different types of cases would benefit from a retainer agreement. For example: 1 Criminal charges 2 Civil cases 3 Divorce, custody, and family law 4 Personal injury and medical negligence 5 Businesses and freelance worker representation 6 Drafting contracts

What is retainer fee?

A retainer fee helps secure the services of the attorney and shows a willingness on the part of the client to hire and cooperate with the lawyer. As such, a retainer agreement is a formal document outlining the relationship between an attorney and client. It details the different obligations and expectations involved, ...

What is contingency fee?

The contingency fee is, therefore, computed after necessary deductions. A variation of this type, called the modified contingency fee, combines a reduced contingency fee percentage and a reduced hourly rate. The compensation most suited for your retainer agreement depends on your capacities.

Why is it important to have a formal document?

Having a formal document that details the expectations and obligations of both attorney and client protects both parties financially and legally. The clarity ensures better cooperation and communication as the case progresses.

What is retainer agreement?

A retainer agreement is a contract wherein a client pays another professional in advance for work to be specified at a later point in time. In exchange, that professional agrees to make himself available to that client for a certain number of hours within a predetermined timeframe.

How does a retainer work?

Though there's no single formula for setting up a retainer agreement, it typically goes something like this: One party -- say, a contractor -- agrees to provide a client with a certain number of hours of work each month. In exchange for locking in that time, the client will pay the contractor in advance for those hours.

Is a retainer a contract?

Whether you're on the client side or the contractor side of a retainer, be sure to review that document carefully before agreeing to its terms. A retainer is a legally binding contract, and violating it could have serious consequences. If you're not sure you should agree to a retainer, don't do it without consulting a lawyer -- because once you ...

Can you work full time as an employee?

Not everyone works as a full-time employee. If you're the type who typically performs contract work for clients, it might pay to see if any of the companies you work for regularly are willing to sign you up on a retainer agreement. Similarly, you might be asked to sign such an agreement if a company finds that it consistently requires your services.

What does it mean to have an attorney on retainer?

Having an attorney on retainer means that you’re paying an attorney a specific advanced legal fee in order to retain (obtain) attorneys legal help in the event of legal troubles. Once an attorney is retained and a retainer fee is paid, the attorney is on standby to assist you with the legal issues for which you’ve retained the attorney.

What is retainer fee?

A retainer fee is one of the most common attorney fee schedules. A retainer is an amount of money that’s paid to a lawyer in advance to retain (hire) him/her to represent you in a legal matter. When setting a retainer fee, an attorney anticipates the amount of legal work that must be done and asks the client to either pay it in full ...

What is attorney-client relationship?

Also, as soon as a retainer agreement is executed, an attorney-client relationship is usually formed, allowing the client to leverage the attorney’s name or the name of his law firm as the name of the entity representing him in the legal matter. Having the name of a well-known attorney gives the client leverage when negotiating, for example, ...

Is a retainer fee refundable?

Retainer fees are usually nonrefundable. To find out whether the retainer fee you paid to an attorney is refundable, you should consult your retainer fee agreement. Most contracts set out the terms as to whether the retainer fee is refundable.

Is a retainer a deposit?

A retainer fee is not a deposit. A deposit typically refers to a sum of money that’s used to hold services, and it’s usually returned to the payer. However, a retainer is typically used to refer to a sum of money that’s given to an attorney as an advanced payment for legal representation in the future. Once the attorney incurs costs and earns the ...

Do you need to read a retainer agreement before signing it?

Often, when a client signs a retainer fee agreement, he is signing a one-sided document that contains many terms that are in there to protect the attorney and his law firm. As such, you need to read the retainer fee agreement before signing it. We will now go through some of the things to look out for in a retainer fee agreement.