What does the fee agreement with a lawyer look like?
December 15, 2022 | 60,00 EUR | answered by Ralf Schröter
Dear lawyer,
My name is Lucas Schulz and I have a question regarding the fee agreement with a lawyer. I recently consulted a lawyer for a legal issue and we discussed the costs, but I am unsure if I understood everything correctly.
The situation is as follows: I had a legal problem for which I needed legal advice and representation. So, I decided to consult a lawyer. During the initial meeting, we discussed the possible costs, but I am not sure about the exact fee agreement and what to expect.
The current situation is that I have already received some bills from my lawyer, but I am not sure if they correspond to the agreed fee rates or if there could be additional costs. I am worried that I might end up paying more than expected or that I cannot estimate the costs in advance.
Therefore, I am wondering what a typical fee agreement with a lawyer looks like. Which costs are usually covered and what additional fees could arise? Are there different types of fee agreements that I should be aware of and what should I pay particular attention to in order to avoid unpleasant surprises?
I would greatly appreciate it if you could answer these questions for me so that I have a better understanding of how to financially prepare for working with a lawyer.
Thank you in advance for your help.
Sincerely,
Lucas Schulz
Dear Mr. Schulz,
Thank you for your inquiry regarding the fee agreement with a lawyer. It is understandable that you may feel uncertain about the costs and would like a clear idea of what to expect. A transparent fee agreement is important to avoid unpleasant surprises and ensure that you understand the financial aspects of legal advice.
Typically, there are various types of fee agreements that can be made between a lawyer and their client. The most common ones are hourly fee agreement, fixed fee agreement, and contingency fee agreement.
In an hourly fee agreement, the lawyer's fee is calculated based on the actual hours worked. The lawyer keeps track of their time and charges accordingly. This can be transparent for the client as they can see exactly how much time was spent on their legal matters.
In a fixed fee agreement, a set amount is agreed upon for the entire legal service. This provides the client with financial planning security as they know from the beginning how much they have to pay for legal advice. There are no surprises at the end of the service as the fee is predetermined.
The contingency fee agreement means that the lawyer's fee depends on a successful outcome of the legal dispute. This means that the lawyer only receives payment in case of a positive result. This type of fee agreement is legally limited in Germany and only allowed under certain conditions.
It is important to discuss and document the exact fee agreement with your lawyer. Clarify in advance which costs are covered and if there could be any additional fees. Make sure the costs are transparent and understandable so you are not surprised at the end.
I recommend carefully reviewing all invoices and fee agreements and asking your lawyer for clarification if there are any uncertainties. Open communication with your lawyer is crucial to avoid misunderstandings and ensure that you understand the financial aspects of legal advice.
I hope this information helps you and gives you a better understanding of what a typical fee agreement with a lawyer looks like. If you have any further questions, please feel free to contact me.
Best regards,
Ralf Schröter
