A retainer agreement is a work for hire contract. The employer pays in advance for work to be specified later. A retainer fee may be paid on a fixed, pre-negotiated rate or on a variable hourly rate depending on the nature of retainer .
A retainership agreement falls between a one-time contract and full-time employment.The purpose of a retainer fee is to ensure payment for future services or work to be rendered.
If the parties do decide to form a retainer agreement, they should draft a written contract for the agreement. This will help them make the various terms clear, including the amount of payment, terms of use for the money, and remedies in case of legal conflicts. Once the contract is signed, it becomes enforceable under law.