The Retainer Agreement Letter is a crucial document used in Indonesian professional practice to establish and formalize ongoing professional relationships between service providers and their clients. It serves as both a formal engagement letter and a binding agreement, typically used when a client requires regular access to professional services over an extended period. The document, governed by Indonesian law and particularly the Civil Code (KUH Perdata), outlines the scope of services, fee arrangements, service delivery standards, and other essential terms of the professional relationship. This type of agreement is particularly valuable for situations requiring consistent professional support, regular advisory services, or ongoing legal consultation, providing clarity on service expectations while ensuring compliance with Indonesian regulatory requirements and professional standards.
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1. Letter Header: Professional letterhead including firm details, date, reference number, and recipient's address
2. Parties: Introduction of the service provider (law firm/professional) and the client with complete legal names and addresses
3. Background: Brief context of the engagement and the client's need for ongoing legal services
4. Definitions: Key terms used throughout the agreement letter
5. Scope of Services: Detailed description of legal services to be provided under the retainer arrangement
6. Term and Renewal: Duration of the retainer agreement and conditions for renewal
7. Retainer Fee Structure: Monthly/periodic retainer amount, payment terms, and billing procedures
8. Service Standards: Commitment to quality and professional standards in service delivery
9. Client Obligations: Client's responsibilities including information provision and cooperation
10. Confidentiality: Obligations regarding confidential information handling
11. Termination: Conditions and procedures for ending the retainer relationship
12. Governing Law: Specification of Indonesian law as governing law
13. Signature Block: Space for signatures, with proper designation of authorized signatories
1. Conflict of Interest: Specific provisions for handling potential conflicts, particularly relevant for larger firms or specialized practices
2. International Services: Additional terms for international clients or cross-border services
3. Additional Personnel: Terms regarding involvement of specific lawyers or professionals, used when client requests dedicated team members
4. Intellectual Property: Provisions regarding ownership of work product, relevant for complex advisory work
5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain business environments
6. Insurance: Professional indemnity insurance details, often required for high-value or high-risk engagements
7. Data Protection: Specific terms for handling personal data, especially important when dealing with international clients or sensitive information
8. Dispute Resolution: Detailed procedures for dispute resolution, including mediation or arbitration provisions
1. Schedule A - Fee Schedule: Detailed breakdown of retainer fees, hourly rates for additional services, and expense categories
2. Schedule B - Scope of Services Detail: Comprehensive list of included and excluded services under the retainer
3. Schedule C - Key Personnel: List of key team members assigned to the client with their roles and responsibilities
4. Schedule D - Service Level Standards: Specific performance metrics and response time commitments
5. Appendix 1 - Client Contact Details: List of authorized client representatives and their contact information
6. Appendix 2 - Reporting Templates: Standard formats for periodic reports and billing statements
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