Retained Fee Agreement
In a retained fee agreement, the employer pays the person he is hiring a fixed agreed fee, usually in advance of any work being carried out. The contract may stipulate conditions regarding the performance of the work.
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Use
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Retainer fees are common in client-attorney relationships. This fee may be for a fixed hourly rate or a fixed total fee to see the case through to its conclusion. This type of fee arrangement is not usually dependent on the outcome of work carried out. The fee may be paid upfront in a lump sum or in installments, for example monthly or quarterly.
Monthly Retainer
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Some attorney-client relationships include payment of a monthly retainer fee to the attorney, who is then available for all legal services the client requires. In this way, the client retains the attorney's services on an ongoing basis or for a set amount of time.
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Other Uses
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Other professions that use retainers include doctors, freelancers and bankers. According to Market Watch, certain doctors who practice "boutique" medicine charge their patients a retainer fee and provide them a more personalized health care service. Freelancers include web designers, software engineers and consultants. Some bankers may charge retainers to private clients for looking after their investments.
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References
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