Retainer Letter and Terms of Business

The document titled 'Retainer Letter and Terms of Business' is a formal agreement between two parties, namely the account job company and party 1. This document outlines the terms and conditions of their engagement and sets out the scope of the services to be provided.

 

The importance of this document lies in its ability to establish a clear understanding between the parties involved. It ensures that both the account job company and party 1 are aware of their rights, obligations, and expectations. By defining the scope of engagement, fees and charges, termination provisions, client due diligence obligations, and limitations of liability, this document serves as a foundation for a successful working relationship.

 

The document begins with a brief introduction, addressing party 1 and expressing gratitude for their appointment of the account job company. It confirms the scope of the instructions and states that the standard terms of business outlined in the document will apply to the current matter and any future matters, unless agreed otherwise.

 

The first section of the document, 'Scope of Engagement,' explains that a specific director, named 'name,' will be primarily responsible for the work. It also mentions the possibility of other directors or associates assisting as needed. The section emphasizes that if 'name' is unavailable, party 1 should contact another director or associate.

 

The second section, 'Fees and Charges,' provides details on how the charges are calculated based on factors such as time expended, complexity of the matter, and seniority of the handler. It mentions that each director and associate has an hourly rate, which forms the basis of the charges. The section also discusses the company's right to request payments on account and submit interim fee bills.

 

The third section, 'Termination of Retainer,' explains the circumstances under which the account job company may cease to act for party 1, such as the inability to obtain proper instructions or non-payment of invoices. It states that party 1 can terminate the retainer with a ten-day written notice but remains liable for fees and charges incurred.

 

The fourth section, 'Client Due Diligence Obligations,' highlights the account job company's obligation to comply with anti-money laundering and know your client guidelines. It mentions the requirement for party 1 to provide certain documents and information to complete the necessary due diligence procedures.

 

The fifth section, 'Limitation of Liability,' clarifies that the account job company provides compliance consulting services and not legal advice. It sets out limitations on the company's liability and specifies the maximum amount for which the company can be held liable.

 

The sixth and final section, 'Miscellaneous,' covers various aspects such as communication, clarity of terms, validity of provisions, and the binding nature of the retainer. It also includes a jurisdiction clause and a request for party 1 to sign and return a copy of the letter to confirm their agreement.

 

In summary, the 'Retainer Letter and Terms of Business' is a crucial document that establishes the terms and conditions of the engagement between the account job company and party 1. It ensures clarity, sets expectations, and protects the interests of both parties throughout their working relationship.

How to use this document?

To effectively use the 'Retainer Letter and Terms of Business' document, follow the step-by-step guidance below:

1. Scope of Engagement:

- Understand that a specific director, named 'name,' will be primarily responsible for the work.

- If 'name' is unavailable, contact another director or associate.

2. Fees and Charges:

- Be aware that charges are calculated based on factors such as time expended, complexity of the matter, and seniority of the handler.

- Expect to receive interim fee bills on a monthly basis or upon completion of recognized stages or work.

- Settle all bills, whether interim or final, within 30 days to avoid interest charges.

3. Termination of Retainer:

- Understand that the account job company may cease to act for you in certain circumstances, such as non-payment of invoices or inability to obtain proper instructions.

- If you wish to terminate the retainer, provide at least ten days' written notice.

4. Client Due Diligence Obligations:

- Be prepared to provide the account job company with the necessary documents and information to fulfill anti-money laundering and know your client guidelines.

- Complete the client information form and provide the supporting documents as requested.

5. Limitation of Liability:

- Understand that the account job company provides compliance consulting services and not legal advice.

- Accept the limitations on the company's liability, which are commercially fair and reasonable.

- Release the company from claims exceeding the maximum amount specified in the document.

6. Miscellaneous:

- Communicate with the account job company in writing or by email.

- Seek clarification on any unclear terms in the document.

- Understand that the retainer supersedes all previous agreements.

- Sign and return a copy of the letter to confirm your agreement.

By following these steps, you can effectively navigate the 'Retainer Letter and Terms of Business' document and ensure a clear understanding of the engagement terms and conditions.