Retainer Agreement: Definition, Example and Related Terms
What is a Retainer Agreement ?
In the context of legal services, a retainer agreement ensures that the attorney will be available to handle the client's legal matters as they arise. This can include anything from providing legal advice, drafting documents, representing the client in court, or negotiating settlements.
A retainer agreement typically outlines the scope of services, the retainer fee, billing arrangement, duration, and termination conditions. Understanding the terms and conditions specified in the retainer agreement is crucial for both parties to ensure there are no misunderstandings regarding the services expected and the fees charged.
For example, a retainer agreement between a business and an attorney might specify that the attorney will handle all the business's legal matters for the next year, and in return, the business will pay the attorney a fixed monthly fee. This agreement provides the business with the assurance of having legal support whenever needed, and it provides the attorney with a steady income source.
Example(s)
Scenario Description A technology startup needs ongoing legal advice and representation for contracts, compliance, and potential litigation. The startup signs a retainer agreement with a law firm, agreeing to pay a monthly retainer fee in exchange for the firm's services as needed. This ensures the firm is readily available to handle any legal issues that arise, without the startup needing to negotiate fees for every individual service. An author requires a literary agent to help with publishing deals and contract negotiations. The author and the literary agent sign a retainer agreement, where the author pays a retainer fee to secure the agent's services over the course of their career. The agent provides ongoing support, including reviewing contracts and negotiating deals, ensuring the author has professional representation at all times.