Contingent Contract With Example In King

State:
Multi-State
County:
King
Control #:
US-00442BG
Format:
Word; 
Rich Text
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Description

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

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  • Preview Contingency Fee Agreement with an Attorney or Law Firm
  • Preview Contingency Fee Agreement with an Attorney or Law Firm

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FAQ

For instance, a home seller may agree to an offer with the contingency that they must find a new home before they sell. If they are unable to find another home within a specified time frame, they may cancel the deal without penalty — so long as this contingency is spelled out in the contract.

Contingent contracts, like contingencies themselves, cannot occur unless a certain condition is met. For instance, the sale of a home cannot take place without a prior home inspection, and an aircraft cannot leave the hangar without a thorough walk-around inspection by the pilot.

Disadvantages of Contingent Contracts: Parties may need to seek legal advice or engage in lengthy negotiations to establish clear terms. Increased Costs: The inclusion of contingencies in contracts may result in additional costs or financial implications.

On one hand, a contingent contract is based on the absolute commitment of the parties to do what the document says. At the same time, the agreement is conditional since the counterparties are obliged to fulfill the commitment only if a certain event does or does not take place in the future.

Parts of a Contingency Contract A contingency contract has three major parts: the task, the reward and the task record.

The main difference between the two lies in their enforceability. Contingent contracts are enforceable by law if the event actually occurs. Wagering agreements, on the other hand, are void and not enforceable in a court of law from the very outset, regardless of the results.

Contingent contracts are versatile and used in various situations where outcomes are uncertain. They provide a structured response to specific conditions, reducing risks for all parties involved.

Technically, yes — a seller can back out of a contingent offer. Before agreeing, they can choose to reject or counter the original offer with their own terms. Once the offer is accepted, if the contingencies aren't met, the seller can back out but there may be legal or financial implications involved.

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Contingent Contract With Example In King