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A retainer fee can be used to guarantee that the lawyer will be available to take a particular case. With this type of agreement, the client would be billed additionally for the legal work that is done.
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 steps often are: Review the Retainer Agreement. ... Hire a New Attorney. ... Send a Termination Letter to Fire an Attorney. ... Finalize the Arrangement Regarding the Transfer of Files. ... Inform the Court.
A retainer is a fee paid to a lawyer or law firm in advance of services being rendered, and the law firm should hold it in a trust account until the services are provided. It gets booked to the balance sheet as a prepaid expense (which is an asset).
Typically, agency retainers are long-term contracts that can last anywhere from six months to many years. In most cases, the client is billed in advance by the agency for its services on a monthly or quarterly basis.
A retainer fee is the upfront cost of a service before the service has been performed. In other words, it's a form of advance payment often required by a consultant, lawyer or freelance professional. For example, a lawyer charges their client a retainer fee prior to the client using their services.
In a definitive sense, a retainer is a fee that is paid in advance in order to hold services (ie. a wedding or event date). While a deposit may also reserve a date, it is returned when the services have been completed. A retainer is by default non-refundable and is not returned.