Monday, March 18, 2013

Some Points To Remember About Law Firm Retainer Agreements


Every single law firm has a huge obligation to really focus its work on its services and goals. It’s important to maintain a well-established relationship both between the lawyers and their clients. It should also be strict principles. And, this should be shown in the conditions and terms written in the law firm retainer agreement or in simple terms, contract. This particular document really should completely describe this relationship for the client to understand as well as the lawyer and the firm itself. There are some pointers to understand these things clearly.

Firstly, the lawyer and the client need to establish their identity first. There are some firms who tend to make agreements on behalf of the legal entity. It can also be a good option as long as the liabilities of each partner and employee plus the joint liability are presented specifically.

Services that are being given by the lawyer and his team should also be described in full sufficient detail. This first part of the agreement will clarify and state the retainer fee. In the following sections, the obligations of each should be mentioned or written. It’s imperative for the client to have a clear understanding of the things that they have to do to gain full advantage of the services that are being given to them by the law firm. One good option to be included in the agreement is the chronology of the works that are to be done by the lawyer. It plays an important role especially if the firm wants to show the retainer payment details.

Attention should also be given to the actual retainer fee section. Fees that are charged by the lawyer as well as each of their associates need to be stated in monetary terms. In most cases, the methods where these retainer fees are being determined in a separate agreement which is called the law firm partnership agreement.

It should also be noted that the retainer rates are usually subject to changes. Any changes in these rates must be well-explained. It should also mention in the agreement when and what circumstances these changes become valid. The size of the changes should also be mentioned.

The retainer agreement should also have a portion which explains in a clear way what these fees are and how these charged are being made. This document also has to show the sum that’s being transferred to the firm’s bank account showing the name of the client. There should also be an explanation with regards to the circumstances for the fee’s withdrawal as well as the expected timing. It also has to provide for possible termination of service and how it will affect the retainer payment and withdrawal. 

There should also be a separate clause with regards to the expenses that are being involved in the provision of the services being provided. This might also include things like travel expenses and investigation costs. Again, these things should be stated specifically and clearly like when and how it will or should be paid.  

You have the option to draw a law firm retainer on your own. But still it’s a good idea to really give considerations on using templates that are being drawn by professionals that are good at doing these things. Once you are given the form, you should be able to customize it according to your firm’s practices and fee charging policies. This way, it will be more secured and will run smoothly. You need help regarding law retainer agreements in Australia? Murdock Cheng Legal Practice will be able to help you with these things. Contact them and let your business legal concerns taken care of.

To know more about this topic, visit this  Murdock Cheng Legal Practice.

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