Cfa Agreement Definition

CFA Agreement Definition: Understanding the Basics

A CFA Agreement, short for “Conditional Fee Agreement,” is a legal agreement between a solicitor and their client. It`s also known as a “no win, no fee” agreement. The CFA Agreement definition states that the solicitor agrees to work on a case for the client, but their fees are only payable if the case is won. If the client loses the case, they do not have to pay any fees to the solicitor.

The CFA Agreement is often used in personal injury cases, where the client may not have the means to pay a solicitor`s fees upfront. It allows them to proceed with a claim without incurring any financial risk. However, it`s important to note that if the case is won, the solicitor`s fees can be much higher than what they would have been if the client had paid upfront.

There are two types of CFA Agreements: “uplift” and “self-financing.” An uplift agreement means that if the case is won, the solicitor`s fees are increased by a percentage of the damages awarded. This percentage is agreed upon between the solicitor and client before the case begins. A self-financing agreement means that the solicitor`s fees are paid by the client from the damages awarded.

It`s important for clients to read and understand the terms of the CFA Agreement before signing it. They should be aware of the solicitor`s fees and any additional costs, such as court fees or expert reports. They should also understand the risks involved if the case is lost and whether they will have to pay any expenses.

In conclusion, a CFA Agreement is a beneficial arrangement for clients who need legal representation but cannot afford the fees upfront. It allows them to proceed with a claim without financial risk. However, it`s important to fully understand the terms of the agreement before signing, and to be aware of any potential risks involved.

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