Retainer Agreement Explainer
When a client has questions about their retainer agreement, or as a companion document to send with the agreement.
Most clients sign a retainer agreement without fully understanding it, which is how fee disputes start. The biggest source of confusion is the retainer itself: clients often do not know whether their payment is an advance deposit drawn down as work is performed, a flat fee, or something else, and agreements differ. A plain-English companion explainer closes that gap, setting accurate expectations about scope, billing, and costs before the first invoice arrives.
Rewriting dense legal terms into clear, everyday language is exactly the kind of task Claude does well. Paste in the retainer agreement and Claude produces a client-friendly summary covering what the lawyer will and will not do, how billing works, how this agreement treats the retainer, what expenses fall to the client, and how either side can end the relationship. Sending it alongside the agreement signals respect for the client's time and supports the duty to communicate.
The explainer must faithfully track the underlying agreement, so review it carefully before sending. Confirm that every statement matches the actual terms, that nothing is oversimplified into inaccuracy, and that the summary does not contradict or appear to modify the signed contract. Claude's draft is a communication aid to refine, not legal advice, and it never replaces the binding agreement itself.
The Prompt
Write a plain-English explanation of the client's retainer agreement below, to send alongside the agreement. <agreement> [PASTE THE FULL RETAINER OR ENGAGEMENT AGREEMENT] </agreement> Client context: [e.g., individual in a divorce, first time hiring a lawyer] Explain, citing the section each point comes from: 1. What the lawyer will do (scope) 2. What the lawyer will NOT do (exclusions) 3. How much it will cost and how billing works, including billing increments 4. Exactly how this agreement treats the retainer (for example, an advance deposit drawn against as work is done, a flat fee earned on receipt, or a true retainer paid for availability), quoting the clause; if it is unclear, say so 5. How any money held in trust is handled and when unused funds are returned, if the agreement says 6. When and how bills arrive 7. Expenses the client pays beyond attorney fees 8. How either side can end the relationship 9. What happens to the file when the matter is over 10. Deadlines or obligations on the client's part Use simple language and short sentences. Do not add or change any term, and do not give advice beyond what the agreement says. Flag anything in the agreement that may be unclear to a client. Include a line stating that the signed agreement controls if anything differs. If something I need is missing or ambiguous, say so instead of assuming. This is a draft for attorney review.
Example Output
A 1-2 page plain-English guide explaining the retainer terms in everyday language, suitable to email to the client.
Illustrative example — names, figures, and facts are fictional.
Understanding Your Retainer Agreement: A Plain-English Guide This short guide explains your agreement in everyday terms. If anything here seems to differ from the signed agreement, the signed agreement controls. Please ask me about any difference. What I will do for you: Represent you in your divorce, including negotiating a parenting plan and the division of property, and appearing in court as needed. What I will NOT do: Handle related matters such as estate planning, tax filings, or any appeal. Those would need a separate agreement. How much it costs: I bill by the hour at $300, tracked in six-minute (one-tenth-hour) increments. So a 15-minute call is billed as 0.3 hours, or $90. What the retainer means: Your $4,000 retainer is NOT a flat fee. Think of it as a deposit. I draw against it as I work, and your monthly bill shows what was used. When the balance runs low (below $1,000), I will ask you to top it up. When you'll get bills: Once a month. Each bill itemizes the work done, the time spent, and any expenses. Expenses beyond my fees: Court filing fees, process-server charges, and similar costs are billed to you in addition to my time. Ending the relationship: You can end it at any time in writing, and so can I, consistent with my ethical duties. You remain responsible for work done up to that point. Your file afterward: I keep your file for seven years after the case closes, then may destroy it. Common questions: Why bill in tenths of an hour? It is a standard, transparent way to track time fairly. Is the retainer refundable? Yes: any unused portion is returned to you. Please call me with any questions. I would rather answer them now than have a surprise on your bill later.
Tips
- •Send this alongside the actual agreement; it shows you respect the client's time and intelligence.
- •Highlight the sections most likely to surprise clients: billing increments, expense charges, and file retention.
- •Include a short FAQ section for common client questions about fees.
- •Check the explainer line by line against the signed agreement; it must not add to or change any term.
Frequently Asked Questions
When should I use a retainer agreement explainer?
Send it as a companion document alongside the retainer agreement at intake, and use it again whenever a client has questions about fees or how billing works. It is most valuable for clients new to working with a lawyer, who are most likely to misunderstand hourly billing and how a retainer works. Pairing it with the agreement helps prevent later disputes.
Can I send the explainer to the client without reviewing it?
No. The explainer must accurately reflect the actual agreement, so review it line by line before sending. Confirm every statement matches the signed terms, watch for oversimplifications that become inaccurate, and make clear the summary is a plain-English aid while the agreement itself controls. The attorney is responsible for ensuring the explainer and the agreement are consistent.
How do I get the most accurate, client-friendly summary?
Paste the full retainer agreement so Claude works from the real terms, not assumptions. Ask it to highlight the points clients most often misunderstand (billing increments, expense charges, how the retainer is treated, and file retention) and to include a short FAQ. Tell it to write for someone with no legal background and to define any term it cannot avoid.
Are there ethics or confidentiality issues with using AI for this?
Yes. The retainer agreement contains confidential client information protected by Model Rule 1.6, and ABA Formal Opinion 512 requires lawyers to safeguard it and supervise AI output. Use tools with appropriate data protections and avoid consumer services that may train on your inputs. Done carefully, a clear explainer also advances the communication duty under Rule 1.4 by helping the client make informed decisions about the representation.
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