The Legal Services Council has prepared a fact sheet on cost agreements available on its website. 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. The terms of the term do not imply that the terms of payment must be disclosed. This will undoubtedly be the subject of particular attention by experts and the courts. No provision has been adopted to require disclosure of other substances: see S 175, paragraph 2, point f). A practitioner retained by another practitioner on behalf of a client is not required to communicate directly to the client. The instruction practitioner must reveal to the client: s 175 (3).
This subsection does not exclude a lawyer who directly discloses to a client and a lawyer that they are speaking directly to the same client. While this scheme is currently unusual, pressure on lawyers to bear lawyers` expenses while waiting for a client to pay may require a change in these agreements. Part 4.3 of the Legal Profession Uniforme Law (NSW) (LPUL) deals with legal fees and div 3 of this part deals with the disclosure of fees. The concept of disclosure developed from the widely held perception that many clients were not aware of the likely costs of a case until they received an invoice from their lawyer. The argument is that the profession often sees clients in immediate difficulty seeking services without thinking about costs or other implications. In these circumstances, the argument is that it is preferable to make the client understand the costs and other implications at the beginning of a case rather than being involved in litigation when attempting to impose a fee for those services. This argument was supported by a study of claims against Law Cover, which showed numerous claims caused by miscommunication during the retainer. Subject to the R72A LPUT reviewed below, a legal practice contrary to the advertising obligations of Pt 4.3, s178 LPUL provides that the cost agreement (if any) is cancelled. This has serious consequences, as costs can only be reimbursed in accordance with the identification of fair and reasonable costs by an evaluator and not in compliance with the cost agreement.  These costs must not exceed the amount that should have been paid under the cost agreement.  Two of The objectives of Pt4.3 are to ensure that clients of law firms are able to make informed decisions about their legal options and the costs of pursuing these options; and to ensure that legal practice requires no more than fair and reasonable amounts for legal work.