What is a Retainer-Cost Agreement?

A retainer is simply an agreement, it is evidenced through writing, verbally or concluded by the conduct of the parties to the relationship. A retainer is essentially an agreement between you and your lawyer setting out the services that will be performed as well as the estimated costs involved.

Table of Contents

How is a Retainer Created?

In order for a retainer to exist, there must be some kind of consideration. That is, a price that is offered in exchange for the lawyer’s services. Further, a retainer must have been created with the intention that you and the lawyer will enter into a legally binding relationship. In doing so the retainer must adhere to the statutory formalities such as those set out in the Legal Professions Act 2004.

For instance, the issue of how and when a client first instructs a law practice is considered under s306. Here, it establishes that it is when the law practice receives instructions from the client. In addition, to these requirements it must be acknowledged that the client must have the ability to enter into the retainer for it to be valid. Finally, the lawyer must have the full consent of the client to enter into the contract.

What are the Lawyer’s Duties Under a Retainer?

The duties under a retainer are the following:

  • Confidentiality of your information
  • The duty to the court and the proper administration of justice
    • Lawyers are not to advise or allow you to act in a manner that would be in breach of the law or mislead the court
      Avoid potential and/or conflicts of interest
  • Comply with statutory and regulatory requirements as to costs and maintaining a professional relationship and sufficient objectivity to ensure that you are afforded proper advice

Unsure about Confidentiality Agreements? You can create your Confidentiality Agreement for Free at Lawpath.

When can retainers be terminated?

The Solicitors Rules in particular rule 13, sets out circumstances in which retainers may be terminated:
Lawyers must ensure completion of the legal services unless:

  • You otherwise agreed
  • The law practice is discharged
  • The law practice terminates the engagement for just cause and on reasonable notice; or
  • The engagement comes to an end by operation of law

Find the perfect lawyer to help your business today!

Get a fixed-fee quote from Australia's largest lawyer marketplace.

Most Popular Articles
You may also like
Recent Articles

Get the latest news

By clicking on 'Sign up to our newsletter' you are agreeing to the Lawpath Terms & Conditions

Share:

Register for our free live webinar today!

Hiring Your First Employee: Get it Right from the Start

12:00pm AEDT
Tuesday 28th January 2025

By clicking on 'Register for webinar' you are agreeing to the Lawpath Terms & Conditions

You may also like

This article is a guide to all legal documents your online business needs in 2024.
Contractual breaches can be devastating. Learn exactly what you can do and what remedies the courts may grant to rectify them.
If you're selling or buying company shares, your share sale contract is essential. Learn about the ins and outs of share sales here.

Thank you!

Your registration is confirmed. Keep an eye on your inbox for an email with details on how to watch the webinar.