Free Legal Retainer Agreement Template

A legal services retainer agreement outlines key financial terms to secure a lawyer’s services. Here are the key elements to include in your contract:

• Type of retainer. Record the type of retainer. One type is a security retainer, which is a prepayment for future services. In this type, the funds are held in a trust and refunded to the client if they go unused. You can also specify that the retainer is a general retainer, meaning it’s nonrefundable if not all of it is used. Check your jurisdiction’s ethical rules regarding fees to ensure that your general retainer is compliant.
• Retainer amount. Note the retainer amount. The amount can vary, as lawyers set retainers based on their expertise, experience, availability, demand, and location.
• Parties’ names. Write the names of the client and the attorney (or law firm).
• Legal matter. Describe the legal matter and services to be provided. Legal Templates’s form lets you note whether an exhibit will be attached so that you can describe the services in more detail.
• Payment terms. The retainer is only the amount paid by the client to secure the lawyer’s availability or cover upcoming legal work. Ensure that you specify the attorney’s ongoing compensation structure by selecting either an hourly rate or a flat-fee model.
• Retainer replenishment. Decide how the retainer will be replenished. It can be when it falls below a preestablished threshold or when it’s depleted. This ensures the lawyer has constant financial coverage to continue their work.
• Termination clause. Specify whether the retainer agreement for legal services will end after the completion of the services, on a specific date, or at-will.
• Confidentiality. Specify that the attorney will maintain confidentiality with all information they gain while working for the client.
• Clause about prior agreements. Include a clause that voids prior discussions, arrangements, and agreements between the parties. This makes it clear that the current contract has the most up-to-date and enforceable terms.
• Other terms. Specify the governing law, severability of the contract, and dispute resolution methods.
• Signatures. Have both the client and the attorney sign the contract.

View an example of a retainer agreement template for legal services to see the terms and conditions involved when securing a lawyer’s availability. When you’re ready, you can fill out Legal Templates’s guided form to customize your document. Download the final form in PDF or Word format.

An attorney and a client agree on a legal retainer by signing their legal retainer agreement. Then, the legal retainer is used by following these steps:

Step 1 – Receive the Retainer

At the time of the agreement, the client pays the agreed-upon retainer to the attorney. Depending on the contract’s terms, the client may pay a single retainer as a down payment for the attorney’s services. Alternatively, they may pay a periodic retainer fee to retain the attorney’s legal assistance continuously, for example, as a legal consultant for a business.

Step 2 – Hold the Retainer in Trust

Typically, the attorney holds the retainer in trust while they perform services for the client. This storage in a trust account, called an Interest on Lawyers’ Trust Accounts (IOLTA), ensures client funds are kept separate from the attorney’s own accounts. A general retainer, however, may be considered immediately earned and may not be held in trust, depending on the contract’s terms.

Step 3 – Log All Hours and Deduct from the Retainer

The attorney logs the hours they work to provide transparent accounting under an attorney retainer agreement. It assures the client that work on their case is progressing, even when progress seems slow. The attorney deducts billable hours and service fees consistent with the agreement’s terms.

Step 4 – Replenish Retainer at Threshold or Depletion

As the client’s legal matter progresses, it is not unusual for the lawyer to use up the retainer. The legal retainer agreement should specify whether the client must replenish the retainer once it reaches a certain threshold or if the lawyer fully depletes it.

Step 5 – Invoice for Hourly Services

If there is no clause for retainer replenishment, the attorney may bill for additional services at their hourly rate. The parties should note this arrangement in the retainer agreement. Alternatively, they may draft a new service agreement to include rates and payment terms once the retainer agreement terminates.