Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will be paid a fixed fee. Under this contract,

Question

Quizplus · Accepted Answer

In a fixed fee contract, the client bears all of the risk because if the lawyer spends more time on the case than anticipated, the client will not be charged more. This gives the lawyer an incentive to rush the case and not devote enough time or resources to it, affecting the quality of representation. Additionally, under a fixed fee contract, the lawyer does not have an incentive to pursue efficiency as they will receive the same payment regardless of the amount of time spent on the case. While it is possible for a lawyer to lie about the hours worked, this is not a necessary outcome of a fixed fee contract.

Suppose a Plaintiff Hires a Lawyer to Represent Her in a Court