Contract Glossary
Retainer
Definition
A retainer is an upfront payment to lock in someone's services. You pay in advance, and they apply the retainer against future work. It guarantees availability for you and steady cash flow for them.
In Practice
You put a lawyer on a $5,000/month retainer. They bill at $400/hour, so the retainer covers about 12.5 hours of work per month. If you only use 8 hours, what happens to the remaining $1,400? That depends on the contract. Some retainers are 'evergreen', unused hours roll over. Others are 'use it or lose it.' Some are fully refundable if you terminate; others aren't. Read the retainer terms carefully, the word 'retainer' doesn't have a single legal meaning.
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