Contingency fee agreements

Question

Quizplus · Accepted Answer

Contingency fee agreements are where a lawyer agrees to receive a fee only if the case is won or settled favorably. This means if the case is lost, the lawyer may not receive any legal fees for the work done, which is what makes option D correct. These agreements are commonly used in personal injury cases, not typically for real estate purchases, will drafting, or incorporations (A). They are subject to various restrictions, such as caps on percentages and disclosure requirements, making (B) incorrect. Contingency fee agreements are different from retainer agreements, where a client pays in advance for legal services, making (C) incorrect. Finally, not all lawyer-client relationships require contingency fee agreements; they are specific to certain types of cases, making (E) incorrect.

Contingency Fee Agreements