There are various types of attorney fee arrangements such as time based, fixed, or contingent. Time based means a fee that is determined by the amount of time involved, such as so much per hour, day or week. Fixed means a fee that is based on an agreed amount, regardless of the time or effort involved or the result obtained. Contingent means a certain agreed percentage or amount that is payable only upon attaining a recovery, regardless of the time or effort involved.
With a contingent fee arrangement, the lawyer receives no fee unless money is recovered for the client. Upon recovery, the lawyer is paid an agreed-upon percentage, usually ranging from an amount equal to 25 to 50 percent of the amount recovered. A written fee agreement should specify the costs and expenses to be deducted and whether such costs and expenses are to be deducted before or after the contingent fee is calculated. Contingent fee agreements are generally not permitted for criminal cases or domestic relations matters.
Even if there is no recovery, however, the client is still responsible for court costs (filing fees, subpoena fees, etc.) and related expenses, such as telephone charges, investigators' fees, medical reports, and other costs.
This form is a fairly typical contingent fee agreement
Contingency agreements are legally binding contracts that outline the terms and conditions between two parties involved in a contingency arrangement. Such agreements are commonly used in various industries, including legal, real estate, and business. A contingency agreement allows one party, typically referred to as the contingent party or beneficiary, to receive a specific payment or compensation only upon the occurrence of a specified event or condition. A typical contingency agreement sample format consists of several key elements. Firstly, it includes a clear and concise title stating that it is a "Contingency Agreement" to ensure the purpose is easily identifiable. The agreement then begins with an introduction that outlines the parties involved in the contract, including their names, addresses, and contact information. The next section of the contingency agreement provides a detailed description of the specific event or condition upon which the payment or compensation will be made. This portion may also outline any exclusions, limitations, or contingencies that need to be met before the payment becomes valid. It is crucial to clearly define the triggering event to avoid any confusion or disputes in the future. Following the event or condition description, the contingency agreement will include a comprehensive clause discussing the payment terms. This section specifies the amount or percentage of payment that the contingent party will receive if the triggering event occurs. Additionally, it may outline any fee structures, payment schedules, or methods of payment agreed upon by the parties. The agreement should also include a clause detailing any additional fees, costs, or expenses that may be incurred by the contingent party. This provision ensures transparency and helps prevent any unexpected financial burdens on the contingent party. Furthermore, a well-drafted contingency agreement sample format should address the termination or cancellation of the agreement. This section should outline the circumstances under which the contract may be terminated by either party and the consequences of such termination, including any penalties or liabilities. In some cases, there may be different types of contingency agreement sample formats depending on the industry or specific circumstances. For example, in the legal field, a contingency agreement sample format may be used between a client and an attorney for cases involving personal injury, where the attorney's payment is contingent upon winning the case or reaching a settlement. Another type of contingency agreement sample format is common in real estate transactions, where an agent's commission is contingent upon successfully closing a sale or lease. This type of agreement ensures that the agent's efforts are compensated only when a transaction is completed. In conclusion, a contingency agreement sample format is a comprehensive document that outlines the terms and conditions of a contingency arrangement. It specifies the triggering event, payment terms, additional fees, and termination provisions. Different industries may have specific types of contingency agreements, such as those used in legal and real estate transactions. Drafting a well-structured and detailed contingency agreement is crucial to ensure a smooth and fair contingency arrangement between the involved parties.
