What is a retainer agreement?

A retainer agreement serves as a contract that clearly outlines the terms of representation and the payments involved between an attorney and their client. It is crucial in the legal profession as it establishes an official understanding of the services to be provided, including the scope of work, fees, payment schedules, and any other pertinent details relevant to the legal relationship. This formal documentation helps ensure that both parties have agreed to the same conditions, which minimizes misunderstandings and promotes professionalism in the attorney-client relationship.

In contrast to other options, a retainer agreement is not simply a legal document for court appearances; it is much broader in scope. It is not a bill for services already rendered, as it deals with future representation rather than prior work. Furthermore, it is not an informal arrangement between friends who are lawyers, as a retainer agreement embodies a formal and enforceable contract intended to protect both the client and the attorney within a legal framework.