If you`re a freelancer or small business owner in California who has ever provided services to a client without a written retainer agreement, you may have learned the hard way how important it is to have one. In fact, California law requires a written retainer agreement for certain types of legal services, such as contingency fee cases. But even if your line of work isn`t typically associated with legal services, having a written retainer agreement can protect both you and your client.
What is a written retainer agreement?
A written retainer agreement is a document that outlines the terms of the relationship between you and your client. This can include the services you`ll provide, the payment terms, and other important details like deadlines, confidentiality, and intellectual property rights.
Why do you need a written retainer agreement?
There are several reasons why having a written retainer agreement is important:
1. It sets expectations: By clearly outlining the scope of the work and the payment terms up front, you`re less likely to encounter misunderstandings or disputes later on.
2. It establishes your professional relationship: A written retainer agreement can help establish that you`re not just a casual acquaintance doing some work on the side, but a professional providing a service that your client is paying for.
3. It protects you legally: A well-drafted retainer agreement can help protect you from liability if something goes wrong. For example, if a client accuses you of not delivering what you promised, you can point to the retainer agreement as evidence of what was agreed upon.
What should be included in a written retainer agreement?
The specific details of a retainer agreement will depend on the nature of your work and the relationship you have with your client. However, there are some basic elements that should be included in nearly every written retainer agreement:
1. Services provided: Clearly state what services you will provide to the client, including any limitations or exclusions.
2. Fees and payment terms: Set out the fees you will charge for your services, as well as the payment terms (e.g. when payment is due, whether you require a deposit, etc.).
3. Confidentiality: If your work involves any confidential information, make sure to address how that information will be protected.
4. Intellectual property: If you will be creating any intellectual property (e.g. writing, design, code), specify who will own the rights to that property.
5. Termination: Clarify the circumstances under which the agreement can be terminated by either party.
6. Dispute resolution: Include a clause that outlines how disputes will be resolved (e.g. through negotiation, mediation, arbitration, or in court).
7. Governing law: Include a provision specifying which state`s laws will govern the agreement.
Conclusion
In summary, a written retainer agreement is an essential tool for protecting both you and your client. Whether you`re a lawyer, a graphic designer, or a freelance writer, taking the time to draft a clear and comprehensive agreement at the beginning of your relationship can save you time, money, and headaches down the road. If you`re not sure where to start, consider consulting with a lawyer or other experienced professional to help you create a retainer agreement that meets the specific needs of your business.