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A retainer fee is an amount of money paid upfront to secure the services of a consultant, freelancer, lawyer, or other professional. A retainer fee is most commonly paid to third parties that the payer has engaged to perform a specific action on their behalf.
The Benefits of a Retainer Arrangement The attorney has the assurance of being paid monthly or at least on a regular basis. This is particularly helpful if a client is slow in paying. The retainer arrangement is also beneficial for the client because it provides an estimated budget for legal fees.
Your retainer agreement should outline what you're doing after the initial meeting, what you'll be paid, and how the client will be updated on their matter.
You may have signed a retainer agreement or a contract with an attorney, believing that he or she was the best choice, only to have communication break down or decide that you are simply not happy with your representation. Fortunately, California law permits you to terminate your contract for legal representation.
In agency-speak, a retainer agreement is an ongoing month-to-month agreement between a service provider and their client. Think of a retainer contract as a work-for-hire agreement where you complete either a set amount of work for the client on a monthly basis or commit a set number of hours to their work.
Retainers are a type of compensation agreement with lawyers either for reserving their employment or as compensation for future services. General retainers are the traditional type of retainers where a lawyer agrees to handle a case or future issues that arise for a client.
The amount of the retainer fee can vary and may be a flat fee or an hourly rate. In short, a legal retainer serves as a guarantee that the lawyer will be available to work on the client's case and provides peace of mind that the client has dedicated legal representation when they need it.
The amount serves as a guarantee by the client to pay the attorney upon completion of the agreed work. The attorney cannot claim the retainer fee until he has completed the work and invoiced the client. Any remaining retainer fee after paying the hourly attorney fees should be returned to the client.