Retainer Fee

AAA

DEFINITION of 'Retainer Fee'

An upfront cost incurred by an individual in order to ensure the services of a consultant, freelancer, etc. A retainer fee is paid most commonly to individual third-parties who have been engaged by the payer to perform a service for them or on their behalf. These fees are almost always paid upfront and only ensure the commitment of the receiver, but does not guarantee an outcome or final product.

INVESTOPEDIA EXPLAINS 'Retainer Fee'

The most common form of retainer fees apply to lawyers, who in most cases require those seeking services to provide an upfront retainer fee, for example $500. As mentioned however, this retainer fee only ensures that services will be rendered and does not equate to other hourly or trial fees which the lawyer or firm may charge during the course of a trial or court proceedings.

RELATED TERMS
  1. Secondary Liability

    A type of legal obligation where one party assumes legal responsibility ...
  2. Common Law

    In the United States, a body of unwritten laws based on precedents ...
  3. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
  4. Community Property

    A U.S. state-level legal distinction of a married individual's ...
  5. Adverse Domination

    A legal doctrine that allows regulators to bring litigation against ...
  6. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
Related Articles
  1. How To Pick The Right Lawyer
    Personal Finance

    How To Pick The Right Lawyer

  2. Get Through Divorce With Your Finances ...
    Budgeting

    Get Through Divorce With Your Finances ...

  3. Tax Court: Your Last Resort
    Taxes

    Tax Court: Your Last Resort

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center