Understanding legal retainer agreement, in case you never signed one
It is crucial to understand the legal retainer agreement before signing it. The legal retainer agreement is the commitment between two parties: The lawyer and the client. The professional purpose of this contract is related to solving legal issues. Retainer provides surety to the lawyer against his services and builds a strong relationship between the client and the lawyer.
Some important aspects should be kept in mind before signing the legal retainer agreement. The agreement must be in written form. It contains who will handle the litigation. There should be no conflict between the client and the lawyer. The lawyer mentions the scope of the work and the purpose of the litigation in the agreement. It must include the approximation of a fee. The most important aspect of the legal retainer agreement is that there is more authority in the hands of the client instead of the attorney.
What is a legal retainer agreement?
A legal retainer agreement is a professional contract between the lawyer and client for litigation. This commitment ensures and strengthens the relationship between the client and the lawyer. The customer delivers the fee of a lawsuit settlement to the lawyer before the start of the litigation. The legal retainer agreement ensures both the lawyer’s services and the client’s payment.
Things keep in mind before signing the legal retainer agreement
Some things are requisite to understand before signing the contract.
The first thing is that the agreement must be written. An oral contract is futile and baseless. There is no evidence of the oral agreement. Logically, all religion has stressed the written agreement due to benefits. There are a lot of benefits of the written contract. In contrast, the oral agreement has some disadvantages.
The oral agreement causes many problems for both parties: the legal advisor and the client. The written agreement is valuable in many aspects. It reduces the chances of conflicts, and all terms and conditions are mentioned.
Complete detail of the work
It is a valuable aspect of the agreement that the work related to the legal action is mentioned in the contract. The purpose is that according to work lawyer tells the charges to the customer. Make sure that the information related to the litigation should be clear and comprehensive.
A statement contains some terms and conditions. Both the legal advisor and the customer must be contented with the agreement, and It leads to a friendly and conflict-free relationship between them.
Correct fee evaluation
The lawyer should tell the right fee evaluation to the customer. There are some ups and downs that come with estimating the fee. The lawyer should inform the client before handling the litigation to avoid scuffles.
Types of a legal retainer agreement
There are four types of retainer agreements.
- Hourly wages
- Contingency tariff
- Flexible fee
- Block fee
It is the type of legal retainer agreement. The commitment of fee payment between the client and the lawyer is based on hourly wages. The terms written in the contract are that the client deposits money in the account of the lawyer according to the working hours. The fee of the litigation is completely dependent upon the nature of the litigation.
For example, the client deposits $2000 in the account of the legal advisor. The hourly fee of an advocate is $100. The deposited amount shows that the lawyer is responsible to work almost 20 hours. The designated amount and hour are just estimated. An evaluation is made before the signing of the agreement. After working, some ups and downs can come in assessed values of fee and hours.
The advantage of a retainer is that the lawyer works for 12 hours, and the work is completed. The remaining amount, which is almost %800, is safe, and the lawyer is responsible to refund it to the client honestly according to the terms of the agreement.
It is the type of agreement in which the client charges the litigation when the lawyer will win the litigation. On the other hand, if the lawyer cannot beat the litigation, he will be deprived of the client’s fee. The reason is that it is mentioned in the agreement. The legal advisor gets his reward only when he becomes successful.
Some other expenditures are requisite for the trial despite the lawyer’s struggle. These expenditures are the cost of the calls, messages, fax, mails, and other documentation. The court orders the client to pay for these expenditures to the lawyer.
The word flexible fee shows the lawyer’s fee demand is flexible. There is no fixed fee package for the customers. It is the common concept that the legal process fee depends upon the type and nature of the trial.
If the legal action is simple, takes less time, and the struggle of the legal advisor, then its fee is less. On the other hand, litigation is complex, complicated, and challenging. It takes much time to resolve it, and its cost is high.
Block fee legal retainer agreement is different and opposite from the Flexible fee agreement. The fee is fixed between the client and the lawyer in this type. The legal advisor estimates all expenditures of the trial and then informs the customer about charges of the legal action. The amounts of the litigation are fixed, and there is no elasticity in them.
The charges are different from litigation to litigation and rely on the simplicity and complexity of the law action. If the litigation is simple, the fee is less. On the other hand, if the law-action is complicated to handle, then the cost is high.
To sum up, the legal retainer agreement is the contract between the attorney and the client. The lawyer provides services to the client. The client pay charges to the legal advisor. Before signing the agreement, some things are crucial to think about: the written agreement, clear terms and conditions, work detail, and complete evaluation of the fee. The client must read this information carefully before signing the legal retainer agreement.