Ok, so here is what I can tell you generally based on my experience:
- Make sure the payment terms are clear. In other words, make sure your contract says that you bill hourly against the retainer, and if the retainer runs out before work is finished, you're entitled to pause services and request additional payment before finalizing anything. That way, if they pull the plug early, you're not stuck eating the cost.
- Include a termination clause that covers outstanding balances.
- You’ll want to make sure that if anything ever goes sideways, both parties agree that any legal disputes will be handled in Michigan. That way, you're not suddenly being dragged to some random state’s court or arbitration.
- Finally, set up a non-delivery rule until full payment is made.
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Hello, is there anything specific that I need to put into my accounting service agreement pertaining to Michigan to reduce liability?
I understand the importance of reducing liability in your accounting service agreement. Are there any particular concerns or issues you have encountered in Michigan that you would like to address?
Pretty much making sure the verbiage is correct. Are there any resources I can see to help? I want to be sure I'm not overexplaining or underexplaining in case of a possible lawsuit.
Have you consulted with a lawyer specializing in business contracts before drafting your accounting service agreement for Michigan?
No, I haven't. This site was the first contract I've constructed.
Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your contract verbiage.
No, just trying to make sure I'm covered.
Hello! Legal Eagle here, and I am an attorney specializing in your area of law.
Do you have a clause that suggests where disputes will be handled?
Hello. I was enquiring about the proper way to word termination of services when a retainer still has money available.
Got it! Let's make sure we cover everything. Since you're dealing with Michigan, we'll keep that in mind. Could you tell me if there are any specific concerns or scenarios you're worried about when terminating services with a retainer balance? This will help tailor the advice to your needs.
In case the retainer doesn't cover a month being complete.
Ok thank you so much for including that! Can you clarify for me what you mean? Like if they want a month but their retainer doesn't cover it?
I bill against the retainer hourly. So if the retainer covers 20 hours of work and I need 25 hours to complete the work before termination of the contract, how would I protect myself to ensure payment of the final 5 hours before termination of the contract?
Basically in an ongoing contract they would just refill the retainer. But if they requested a termination I would not want to send work that is not complete for at least that portion.
Ok I've got what you're getting at here! Were there any other facts you'd like to add before I answered your question?
No, that's it.
Ok, so here is what I can tell you generally based on my experience:
- Make sure the payment terms are clear. In other words, make sure your contract says that you bill hourly against the retainer, and if the retainer runs out before work is finished, you're entitled to pause services and request additional payment before finalizing anything. That way, if they pull the plug early, you're not stuck eating the cost.
- Include a termination clause that covers outstanding balances.
- You’ll want to make sure that if anything ever goes sideways, both parties agree that any legal disputes will be handled in Michigan. That way, you're not suddenly being dragged to some random state’s court or arbitration.
- Finally, set up a non-delivery rule until full payment is made.
Does that help clarify things? I want to make sure I didn’t leave anything out.
Great I have all of the above so I was thinking properly. Thank you for your help.
For sure! Did I thoroughly address your question? Did I provide top-tier service to you? If the answer is no to either, please let me know so I can help!
Hello! I want to make sure ALL of your concerns were addressed. Did you have any concerns about this that still need to be addressed? I'm happy to help.
Sorry. You've been a great help. I didn't realize you were still waiting.
Oh it's no problem thank you!
