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Proposed Retainer Agreement

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PROPOSED RETAINER AGREEMENT

This Proposed Retainer Agreement (the "Agreement") is entered into as of by and between Client Name: (the "Client") and Law Firm Name: (the "Firm").

RECITALS

WHEREAS, the Client desires to engage the Firm to provide legal services described herein and the Firm agrees to provide such services under the terms set forth in this Agreement;

WHEREAS, the parties intend to set forth the scope, fees, retainer arrangement, billing practices and other material terms of the engagement in a written retainer agreement;

WHEREAS, the Firm has disclosed any known potential conflicts in writing and the Client acknowledges receipt of such disclosures as reflected in the signature section below or in an attached disclosure statement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. ENGAGEMENT; SCOPE OF SERVICES

The Client hereby engages the Firm to perform legal services reasonably necessary for the representation described below, and the Firm accepts such engagement subject to the terms of this Agreement. The scope of the Firm's engagement shall be limited to the matters specifically described by the Client and agreed in writing. Any services outside the defined scope shall require a written amendment to this Agreement or separate engagement agreement.

2. TERM

This Agreement shall commence on the Effective Date identified above and shall continue until the completion of the services described in Section 1 or until terminated in accordance with Section 8 of this Agreement.

3. FEES, RETAINER AND PAYMENT

The Client agrees to pay the Firm for services rendered at the rates and on the terms set forth below. All fees are subject to billing in accordance with the Firm's standard practices and are payable when invoiced unless otherwise stated in this Agreement.

Hourly billing at the rates below
Flat fee for defined scope

The retainer shall be deposited into the Firm's trust or escrow account and applied against final invoices in accordance with applicable rules. The Client understands that the retainer is a security deposit for fees and costs and does not limit the Client's obligation to pay fees earned that exceed the retainer. The Firm shall provide periodic statements showing amounts billed against the retainer balance.

4. COSTS, EXPENSES AND DISBURSEMENTS

The Client shall reimburse the Firm for all reasonable out-of-pocket expenses incurred in connection with the representation, including but not limited to filing fees, court costs, courier and messenger charges, deposition and transcript costs, expert fees, travel, and investigation expenses. Such expenses may be billed as incurred or advanced by the Firm and charged to the Client.

5. CONFLICTS OF INTEREST

The Firm represents that it has conducted reasonable inquiry concerning conflicts of interest and that any actual or potential conflicts that the Firm has identified have been disclosed in writing to the Client. The Client acknowledges that the Firm may continue to represent other clients in matters unrelated to the subject matter of this engagement, provided no conflict exists or consent is obtained.

6. CONFIDENTIALITY AND ATTORNEY-CLIENT PRIVILEGE

The Firm shall maintain in confidence all information obtained in the course of representation except to the extent disclosure is authorized by the Client or required by law. The attorney-client privilege and other applicable privileges shall belong to the Client. The Firm may disclose confidential information to personnel, consultants, or experts as necessary for the representation, subject to obligations of confidentiality.

7. RECORDS, FILES AND DOCUMENTS

Client files, including documents provided by the Client, shall be maintained by the Firm. Upon termination or completion of the matter and after payment of all outstanding fees and costs, the Firm shall deliver original Client documents to the Client upon request. The Firm may retain copies of the file for its records and may destroy electronic or physical files after a reasonable retention period consistent with professional obligations.

8. TERMINATION

Either party may terminate this Agreement upon written notice to the other party. The Client remains obligated to pay for all fees and costs incurred through the date of termination. Upon termination, the Firm shall take reasonable steps to protect the Client's interests, including giving reasonable notice and allowing time for employment of other counsel, and, to the extent required by law and professional rules, shall deliver to the Client all papers and property to which the Client is entitled upon payment of outstanding fees and costs.

9. DISPUTE RESOLUTION

The parties agree that any dispute arising out of or relating to this Agreement or the services provided hereunder shall first be submitted to non-binding mediation. If the dispute is not resolved through mediation within a reasonable time, the parties may pursue any remedy at law or in equity, including arbitration or litigation, subject to applicable statutes of limitation. Nothing in this section shall prevent the Firm from pursuing collection of unpaid fees in an appropriate forum.

10. NOTICES

All notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail (return receipt requested), or sent by reputable overnight courier to the addresses set forth below or to such other address as either party may designate in writing.

11. AMENDMENTS; WAIVER

This Agreement may be amended only by a writing signed by both parties. No waiver of any provision or breach of this Agreement shall be effective unless in writing and signed by the party waiving the right. A waiver of one breach shall not operate as a waiver of any subsequent breach.

12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state identified below without regard to principles of conflicts of law. The parties submit to the exclusive jurisdiction of the courts located in that state for any action arising out of this Agreement, subject to the dispute resolution provisions above.

13. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, together with any written disclosures or schedules referenced herein, constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be severed and the remaining provisions shall continue in full force and effect.

14. COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or electronic image shall be deemed binding for all purposes.

15. CLIENT ACKNOWLEDGMENTS

The Client acknowledges receipt of a copy of this Agreement, has had an opportunity to ask questions, has read and understands this Agreement, and consents to the terms herein. The Client also acknowledges that the Firm has disclosed any known conflicts of interest and the Client consents to continued representation under the described terms unless otherwise stated in a separate written consent.

Client Name:

By:

Date:

Firm Name:

By:

Date:

Enter text✕

What a Proposed Retainer Agreement Is

A Proposed Retainer Agreement is a written contract a service provider presents to a prospective client that sets out the scope of work, fee structure, retainer amount, billing cadence, and basic obligations before services begin. It establishes whether fees are hourly, fixed, or contingency, describes deliverables and timelines, allocates responsibility for expenses, and includes confidentiality, termination, and dispute-resolution terms. The agreement typically ends with signature blocks for both parties and an effective date that determines when legal obligations attach.

Why a Clear Proposed Retainer Agreement Matters

A well-drafted Proposed Retainer Agreement reduces later disputes by documenting expectations, limits liability, and clarifies payment terms and deliverables before work begins.

Why a Clear Proposed Retainer Agreement Matters

Who Typically Prepares or Signs This Agreement

Small firms, independent professionals, and in-house legal or procurement teams commonly prepare and present a Proposed Retainer Agreement before starting paid work.

  • Law firms and attorneys preparing client engagement terms and fee arrangements.
  • Consultants, marketing agencies, and freelancers defining scope and billing.
  • Corporate procurement or legal teams approving vendor engagement terms.

Signers include authorized representatives with signing authority and any party whose consent is required under the chosen governing law.

Typical Signatory Roles

Lead Counsel

A licensed attorney or managing partner who signs on behalf of a law firm; the retainer usually clarifies billing rates, trust accounting rules, conflict checks, and ethical requirements under state bar regulations.

Client Representative

An authorized officer or purchasing manager who signs for the client entity; this person confirms payment authority, billing contact, and acceptance of scope, termination, and indemnity clauses.

Essential Information the Agreement Must Contain

Client identity: Full legal name of the client
Provider identity: Full legal name of the firm
Effective date: MM/DD/YYYY format
Scope summary: Concise description of services
Payment terms: Retainer amount and billing cadence
Governing law: State selected to interpret the agreement

Key Legal Risks to Watch For

Unclear scope: Disputes over deliverables
Vague fees: Billing disputes and late payments
Improper trust handling: Ethics violations for attorneys
Missing consent: ESIGN consumer disclosure required
Data exposure: HIPAA or privacy breach risk
Invalid signature: Enforceability issues under ESIGN/UETA

Common Preparation Mistakes to Avoid

  • Using vague deliverables that leave timing and acceptance criteria undefined, which often leads to client disagreement and scope creep.
  • Failing to list reimbursable expenses or caps, causing unexpected invoice disputes and strained client relationships.
  • Neglecting to specify billing cadence and late-payment interest, which can delay collections and complicate accounting.
  • Omitting an electronic-consent disclosure for consumer-facing engagements, risking noncompliance with 15 U.S.C. §7001 (ESIGN).

Real-world Examples of Retainer Usage

Two succinct case summaries show how different organizations use a Proposed Retainer Agreement to align expectations and start work promptly.

Optica Ventures — Legal Engagement

Optica used a written retainer to define limited-scope corporate advice and hourly rates.

  • The arrangement required a trust-held retainer.
  • As COO Brian Fitzgibbons noted, clear terms reduced billing questions and sped up client onboarding while preserving ethical accounting practices.

Martin Properties — Property Management

A small real estate firm used a retainer to cover initial leasing and negotiation services.

  • Retainer applied to invoices.
  • Founder Tim Martin reported the agreement enabled remote signature collection and ensured funds were available before property marketing began, improving cash flow predictability.

Step-by-Step: Completing a Proposed Retainer Agreement

Follow these core steps to complete and execute a Proposed Retainer Agreement in a clear, enforceable manner.

  • 01
    Prepare draft: Define scope, fees, and term in plain language.
  • 02
    Confirm parties: Use full legal entity names and addresses.
  • 03
    Set payment terms: Specify retainer amount, invoicing, and interest.
  • 04
    Sign and date: Collect signatures and record the effective date.

Where to Send or File the Agreement

A Proposed Retainer Agreement should be routed to the designated billing contact, the legal or procurement department, and stored in the contract repository after signature.

  • To the client: Email or secure link to authorized representative
  • Internal legal: Copy to counsel for conflict checks and review
  • Accounting: Record retainer receipt and set up billing
  • Contract repository: Store executed copy for retention and audit

Core Sections to Include in a Professional Proposed Retainer Agreement

Include these elements to ensure the agreement is comprehensive, enforceable, and minimizes future disputes.

Scope of Services

A precise, itemized description of tasks and deliverables, acceptance criteria, and any exclusions so both parties understand what is and is not covered.

Fee Structure

Clear statement of retainer amount, hourly or flat rates, invoicing intervals, expense reimbursement rules, and late-payment remedies.

Term and Termination

Effective date, duration, renewal conditions, notice periods, and consequences of termination including fee settlements and return of documents.

Confidentiality

Scope of confidential information, permitted disclosures, and duration of confidentiality obligations after termination.

Dispute Resolution

Choice of governing law, forum selection, and any agreed mediation or arbitration process to resolve conflicts.

Signatures and Authority

Signature blocks for authorized signatories, printed names, titles, dates, and any witness or notarization provisions if required.

How to Configure an Online Retainer Workflow

Set up a digital workflow that enforces required fields, collects signatures, and automatically archives the executed agreement.

Field Configuration
Template name Standardize the retainer template for reuse
Signature order Sequential or parallel signing as required
Authentication Email, SMS code, or stronger KBA where needed
Retention policy Auto-archive and apply retention tags

Digital Signing and Submission Considerations

Choose a platform that supports audit trails, common integrations, and secure storage for executed retainers.

  • File formats: PDF, DOCX, and HTML supported
  • Integrations: Connects with Salesforce, NetSuite, Google Workspace
  • Security: TLS in transit; AES-256 at rest

Typical Timelines and Deadlines

Key dates and deadlines help both parties track when payments are due and when services will commence.

Effective date:

Date the agreement becomes operative (MM/DD/YYYY)

Retainer payment due:

Often payable upon signing; applies to invoice scheduling

Invoice cycle:

Monthly, biweekly, or milestone billing as stated

Termination notice:

Typically 30 days unless otherwise agreed

Response windows:

Specify review/approval times for deliverables

Key Milestones from Proposal to Work Start

A simple milestone sequence ensures timely onboarding and prevents gaps between agreement and performance.

01

Proposal delivered

Client receives proposed retainer and terms for review

02

Agreement signed

All parties execute and date the document

03

Retainer received

Accounting posts payment and confirms receipt

04

Work begins

Services commence per the effective date and scope

eSignature Vendor Pricing Snapshot for Retainer Workflows

Compare core pricing and capability indicators relevant to executing Proposed Retainer Agreements; signNow appears first per comparison convention.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No

Frequently Asked Questions About Proposed Retainer Agreements

Answers to common questions about enforceability, e-signing, amendments, and storing executed retainers.


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