Your client has the right to negotiate how you charge the fees; and you can make them a written offer as part of the cost agreement. It cannot be a conditional cost agreement on a criminal or family issue. There are strict rules on how to deal with cost agreements. If you do not comply with these rules, the agreement may be cancelled, even if your client has accepted it. A „cost agreement“ is part of your obligation to open fees to your client. This is the formal agreement between your law firm and your client on how you structure the cost of your work. The Law Society`s website now contains revised and updated precedents for legal fee agreements and disclosure documents, in accordance with Part 3.2 of the Legal Profession Act 2004. Precedents include exemptions for conditional cost agreements (s 323) and for cases where a demanding exemption from client disclosure applies (ss 302, 312 (1) (c) d) and related provisions). Find out more here.
For any legal matter, regardless of value, you must have a cost agreement with your client. Although the deal is likely to be less than $750 and you will not have to provide a full cost statement, you still need to have a cost agreement. The Legal Services Council has prepared a fact sheet on cost agreements available on its website. If you think your client has a good chance of succeeding, you can also include a condition for paying a „buoyancy fee.“ This is an additional payment for a successful result, which must not exceed 25% of the procedural costs (excluding disbursements). Your cost agreement must be clear about how the fee is charged, what you expect from the fee, and what factors can change the final calculation of fees. These „conditional cost agreements“ must be concluded in writing and must be clear. You must include all the conditions that you define as a successful result, and they must be accepted in writing or cannot be applied. You cannot charge your customer if they have not accepted your cost agreement. Some cost agreements may be accepted either in writing or by other means that clearly indicate that they accept it. If you offer a „conditional cost agreement“ (for example. B no profit without royalty agreement), this can only be accepted in writing.
For the work related to the case, you can only charge fair and reasonable costs. Their costs must also be reasonable and proportionate to related work.