A fee agreement letter can be defined as a contract where 2 parties agree to a structure of fee for services. Mostly, it is used by lawyers & their clients. Some countries require such a letter for lawyers. After he/she agrees to represent someone, the lawyer provides the details of fee agreement.
What Does a Fee Agreement Mean?
A fee agreement is also well known as a retainer agreement. Some people also call it a representation agreement. This kind of agreement sets out the fees and the terms of the relationship between a lawyer and his/her client.
What Should Be Included in a Fee Agreement Letter?
This kind of agreement letter should contain the following elements:
- The basic costs
- The services covered
- Scope of Work
- The responsibility of the customer or client
- The list of terms & conditions for termination if the fee is on-going
- A disclaimer for expectations
How to Write a Fee Agreement Letter
Writing such a letter can be done with the following steps:
- First of all, you have to create a polite salutation.
- Second of all, you should state the fee agreement.
- Then, make the details of the fee agreement including the fees, scope of work, client responsibilities, and termination.
- After that, request to sign & return the letter if the terms are accepted.
- For the next step, include your contact details.
- Last but not least, sign and date the agreement letter.
Tips for Writing a Fee Agreement Letter
When writing such a letter, make sure that you consider the following tips:
- Use the proper format.
- Be as detailed as possible.
- Pay attention to any details, spelling, and grammar.
- Keep it concise, brief, and easy to understand.
- Proofread the letter to avoid any errors & mistakes.
Fee Agreement Letter Sample
For your reference, we provide you a sample of a letter for a fee agreement below:
Dear Mr. Mike Strong,
After our meeting, I’ve agreed to represent you regarding the break of your business partnership. The fees & scopes are summarized below:
Retainer: $ 4,000/month covering phone conversations, arbitration appearances, and in person meetings.
Extra hourly research: $ 150/hour, not to exceed $ 1,500/month total.
Scope of Work:
The firm will represent you in legal proceedings during arbitration & possible court appearance. It aims to keep the company intact & operable. It also aims to leave the client’s partner with adequate retirement without straining the corporation.
Any requests must be replied in 48 hours. Besides, the client should be available once a month for a review. The client must also come to all arbitration meetings.
If the notice of a termination is given, the month’s retainer & current research hours will be billed. All documents will be turned to the client.
If you accept these terms, sign & return this letter.
That is all about a fee agreement letter. Hopefully, the guidelines and a sample above will help you a lot.