The business world of today is very complex in terms of legal complexities. All documented and undocumented actions can be challenged in a court of law and it is imperative for business firms to find a safe end for their dealings before an alarming situation prevails. All written communications, for instance, appointment letters, termination letters, email correspondence, business contracts and all other documentations issued or received by corporate firms may be considered as binding contracts or otherwise and can be used as evidence to initiate a charge-sheet against a corporate organization. To prevent such a situation from arising, corporate firms hire legal firms or individual legal councils. These legal entities guide the corporate firms all along in their dealings with other business firms and also dealings within the firms. Some organizations may find it appropriate to hire councils for dealing while others find it feasible to hire in-house legal entities to safeguard their legal interests. Many law firms offer legal consultation on a fixed yearly charge. As this charge is irrespective of the trending increase or decrease of workload on these legal entities, the corporate organizations can stop worrying about the cost factor for resolving their legal issues once they have deposited an annual fee for these services. Having this service in technical terms is called legal retainer-ship.
The benefits of availing legal retainer-ship are numerous for corporate organizations. To start off with, if an organization opts for the fixed annual fee model, it will get unlimited non-litigation legal services throughout the year. The law experts will provide the corporate organization legal consultation on contracts, issuance of legal notices, labor related issues, arbitration notices, demand notices and all other correspondence which might be considered in the domain for legal advice. A law firm has lawyers specializing in various aspects of the law. Regardless of what the nature of a particular legal issue may be, a corporate organization can be provided with the expert legal counsel for that case. The fixed annual fee does not include drafting of contracts, appearing before tribunals or authorities, litigation and arbitration. Though the law firm being hired on annual fee will charge an organization considerably lower for these services as opposed to the amount it charges for the same services from a client who hires them only for this particular venture.
In the task to task or predetermined fee model, all the services can be availed by corporate organizations on a case to case basis. Legal councils appear before legal authorities and courts for corporate organizations and charge them for that particular session on a fee which is decided between them.
Lastly, the law firms keep electronic records of all their clients and hence can be produced whenever required. This spares business firms from the hectic activity of filing and maintaining records of their legal issues and can be safely left for the hired legal firms to maintain. Companies may require many years or decades old documents at any stage and this can be demanded from the legal firm working for them. The law firms also send monthly reports of the pending or in progress cases for that organization so that they remain updated.