Conditional Fee Agreement Template

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A conditional fee agreement (CFA) is a contract between a client and a legal professional that outlines the terms of their relationship, including the fees to be charged and the conditions under which those fees will be paid. In essence, a CFA is a risk-sharing agreement where the legal professional’s fees are contingent upon the outcome of the case.

Essential Elements of a Conditional Fee Agreement

Free Contingency Fee Agreement Template  PDF & Word
Free Contingency Fee Agreement Template PDF & Word

1. Parties to the Agreement: Clearly identify the client and the legal professional.
2. Scope of Representation: Define the specific legal services to be provided.
3. Conditional Fee Basis: Explicitly state that the agreement is based on a conditional fee arrangement.
4. Success Fee: Specify the percentage of the damages or settlement that the legal professional will receive if the case is successful.
5. Base Fee: Indicate the fixed or hourly rate that will be charged if the case is unsuccessful.
6. Disbursements: Outline the client’s responsibility for court fees, expert witness fees, and other costs.
7. Termination Clause: Address the circumstances under which either party can terminate the agreement.
8. Governing Law: Specify the jurisdiction that will govern the agreement.
9. Dispute Resolution: Outline the procedure for resolving any disputes that may arise.
10. Signature: Both the client and the legal professional must sign the agreement.

Design Elements for a Professional Conditional Fee Agreement

1. Layout and Formatting: Use a clean and professional layout with consistent margins, fonts, and spacing.
2. Headings and Subheadings: Employ clear and concise headings and subheadings to organize the information.
3. Language and Tone: Use formal and professional language that is easy to understand. Avoid jargon or legal terms that may confuse the client.
4. Clarity and Conciseness: Ensure that the agreement is well-written and easy to follow. Avoid unnecessary complexity or ambiguity.
5. Visual Appeal: Consider using a professional template or design software to enhance the visual appeal of the document.
6. Branding: Incorporate your law firm’s branding elements, such as your logo and color scheme, to create a cohesive and professional look.

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Example Sections and Content

Parties to the Agreement
This section should clearly identify the client and the legal professional, including their full names and addresses.

Scope of Representation
This section should outline the specific legal services to be provided, such as litigation, negotiation, or advice.

Conditional Fee Basis
This section should explicitly state that the agreement is based on a conditional fee arrangement and define the terms of the success fee.

Success Fee
This section should specify the percentage of the damages or settlement that the legal professional will receive if the case is successful.

Base Fee
This section should indicate the fixed or hourly rate that will be charged if the case is unsuccessful.

Disbursements
This section should outline the client’s responsibility for court fees, expert witness fees, and other costs.

Termination Clause
This section should address the circumstances under which either party can terminate the agreement, such as if the client fails to cooperate or if the legal professional is unable to continue.

Governing Law
This section should specify the jurisdiction that will govern the agreement.

Dispute Resolution
This section should outline the procedure for resolving any disputes that may arise, such as mediation or arbitration.

Signature
This section should include a space for both the client and the legal professional to sign the agreement, along with their printed names and dates.

Conclusion

A well-designed conditional fee agreement is essential for establishing a clear and professional relationship between a client and a legal professional. By following the guidelines outlined in this guide, you can create a CFA that is both informative and visually appealing.

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