Match the descriptions to Retainer billing.

Match the descriptions to Retainer billing.

• A. Hourly billing: Client is billed based on an hourly rate rounded up to stated increments of an hour.
• B. Retainer: Client is billed an advance payment for future legal work.
• C. Value billing: Client is charged a percentage of the value of the deal.
• D. Fixed-fee billing: Client is billed a set fee for a particular service project.

Answer: (B)

Retainer billing centers on an upfront payment that secures the lawyer’s availability for future work. The client provides an advance, which is often placed in trust and drawn down as work is performed or billed against later. This prepaid amount establishes a pool of funds for upcoming services and is a hallmark of retainer arrangements. This matches the description because it emphasizes prepaid funds for future legal work, rather than charges based on hours actually worked, a percentage of deal value, or a fixed price for a project. Hourly billing charges for time spent; value billing ties fees to the deal’s value; fixed-fee billing sets a single price for a defined project.

Retainer billing centers on an upfront payment that secures the lawyer’s availability for future work. The client provides an advance, which is often placed in trust and drawn down as work is performed or billed against later. This prepaid amount establishes a pool of funds for upcoming services and is a hallmark of retainer arrangements.

This matches the description because it emphasizes prepaid funds for future legal work, rather than charges based on hours actually worked, a percentage of deal value, or a fixed price for a project. Hourly billing charges for time spent; value billing ties fees to the deal’s value; fixed-fee billing sets a single price for a defined project.