A business retainer agreement is a legal document that outlines the terms and conditions of an ongoing business relationship between a client and a service provider. It is an essential document in the business world, as it clarifies the expectations of both parties, establishes the scope of work, and provides a framework for the delivery of services.
If you are a business owner or service provider, having a well-structured and comprehensive retainer agreement can help you avoid misunderstandings and disputes with your clients. To help you get started, we have prepared a business retainer agreement sample that you can use as a guide when drafting your own.
Before we dive into the details of the sample agreement, let`s first discuss the key elements of a business retainer agreement.
Key Elements of a Business Retainer Agreement
1. Scope of work: This section outlines the services that the service provider will provide to the client. It should be clear, specific, and detailed to avoid misunderstandings.
2. Payment terms: This section outlines the payment terms, including the retainer fee, hourly rate, and payment schedule. It should also specify the consequences of late or non-payment.
3. Termination clause: This section outlines the conditions under which either party can terminate the agreement, including notice periods.
4. Confidentiality clause: This section outlines the confidentiality obligations of both parties, including the protection of sensitive information and trade secrets.
5. Intellectual property rights: This section clarifies the ownership and use of any intellectual property created or used during the course of the business relationship.
6. Jurisdiction clause: This section specifies the jurisdiction and governing law of the agreement.
Business Retainer Agreement Sample
Now that we have discussed the key elements of a business retainer agreement, let`s take a look at a sample agreement. Please note that this is only a sample and should be customized to meet your specific needs and requirements.
[Insert name of Service Provider]
[Insert address]
[Insert city, state, ZIP code]
[Insert phone number]
[Insert email address]
[Insert name of Client]
[Insert address]
[Insert city, state, ZIP code]
[Insert phone number]
[Insert email address]
Business Retainer Agreement
This Agreement is made and entered into on [Insert date], by and between [Insert name of Service Provider], with its principal place of business at [Insert address], and [Insert name of Client], with its principal place of business at [Insert address].
1. Scope of Work
Service Provider agrees to provide [Insert description of services] to Client, as outlined in Exhibit A attached hereto and incorporated herein by reference. Service Provider shall use its best efforts to perform the services in a timely and professional manner.
2. Payment Terms
In consideration for the services provided, Client agrees to pay Service Provider a monthly retainer fee of [Insert amount] for a period of [Insert duration]. Client shall also pay Service Provider for any additional services provided at the hourly rate of [Insert rate]. Payment shall be made on a monthly basis and is due on the [Insert date]. Late payments shall accrue interest at the rate of [Insert rate] per month. In the event of non-payment, Service Provider shall have the right to terminate this Agreement.
3. Termination Clause
This Agreement may be terminated by either party upon [Insert notice period]. Termination shall not relieve Client of any obligation to pay for services rendered prior to the effective date of termination.
4. Confidentiality Clause
Both parties agree to maintain the confidentiality of any and all information disclosed during the course of the business relationship, including trade secrets and confidential information. Both parties shall take all necessary measures to protect such information from unauthorized disclosure, and shall not use such information for any purpose other than the performance of this Agreement.
5. Intellectual Property Rights
Any intellectual property created or used during the course of the business relationship shall remain the property of the respective owner. Service Provider grants Client a non-exclusive, non-transferable license to use such intellectual property solely for the purposes of this Agreement.
6. Jurisdiction Clause
This Agreement shall be governed by and construed in accordance with the laws of the State of [Insert state]. Any legal action arising out of this Agreement shall be brought in the state or federal courts located in [Insert city, state].
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
Service Provider: [Insert name]
Client: [Insert name]
Exhibit A
[Insert description of services]