Can a contingent fee agreement be e-signed?

Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted if intent, consent, attribution, and retention are documented.

Is notarization required for validity?

Generally no for contingency contracts, but notarization may be required by local rules in some contexts; check state law or court requirements before relying on it.

What if the client wants to cancel?

Follow the termination clause in the agreement; the attorney may retain fees for work performed and be entitled to reimbursement for advanced costs, depending on the contract.

How do I correct a signed agreement?

Prepare an amendment signed by both parties or a rescission and replacement. Do not alter a signed copy without documented mutual consent.

Who should keep the original executed file?

Both parties should retain the final signed PDF with audit trail; the attorney must also preserve trust accounting records per applicable ethics and tax rules.

How long must I retain the agreement?

Retain for a minimum of 3 years for tax purposes (IRC §6501(a)); keep healthcare-related files 6 years (45 CFR §164.530(j)) and check state-specific rules.

Electronic Signature
Templates
Legal
Contingent Fee Agreement

Contingent Fee Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

CONTINGENT FEE AGREEMENT

This Contingent Fee Agreement (the Agreement) is made and entered into on this day of , , by and between Client Name: (Client), and Counsel Name: (Counsel).

RECITALS

WHEREAS, Client seeks legal representation by Counsel with respect to the matter described as: (the Matter); and

WHEREAS, Counsel has reviewed the factual and legal circumstances presented by Client and is willing to undertake representation on a contingent fee basis as set forth in this Agreement; and

WHEREAS, the parties intend by this Agreement to define their respective rights, duties, and obligations in the event of recovery by settlement, judgment, or otherwise.

NOW THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows:

1. ENGAGEMENT AND SCOPE

Client retains Counsel to represent Client in the Matter, including investigation, negotiation, litigation, trial, appeal, and collection efforts related to the Matter. Counsel shall have the authority to take those actions reasonably necessary to prosecute and, if appropriate, to settle the Matter, subject to the limitations in Section 5 below.

Detailed description of Matter

2. CONTINGENT FEE

Counsel's fee for services rendered under this Agreement shall be contingent upon the recovery of money or property for Client, whether by settlement, judgment, award, or otherwise (Recovery). If there is no Recovery, Client shall owe no attorney fee to Counsel except as provided in Section 3 for costs advanced.

The contingent fee shall be computed as follows:

Contingent fee on settlement prior to filing suit Contingent fee after filing but prior to trial Contingent fee after trial or verdict

3. COSTS AND EXPENSES

Client shall be responsible for all costs and expenses incurred in connection with the prosecution of the Matter, including but not limited to filing fees, deposition costs, expert fees, messenger and courier charges, travel, process service, and costs of obtaining medical records and transcripts (Costs). Counsel may, at Counsel's discretion, advance Costs on Client's behalf. Any Costs advanced by Counsel shall be reimbursed from Recovery prior to the computation of Counsel's contingent fee unless the parties agree otherwise in writing.

Counsel advances costs? Check if Counsel will advance Costs on Client's behalf

4. CALCULATION OF RECOVERY

For purposes of applying the contingent fee, "Gross Recovery" means the total value of all monetary and non-monetary relief obtained on behalf of Client. "Net Recovery" means Gross Recovery minus Costs, statutory liens, valid subrogation claims, and amounts required to satisfy outstanding liens by operation of law. The contingent fee shall be applied to the Net Recovery unless otherwise agreed in writing.

Anticipated liens or encumbrances

5. SETTLEMENT AUTHORITY

Counsel agrees to consult with Client regarding settlement offers material to the overall recovery. Client grants Counsel authority to enter into settlements up to the amount of without additional written approval. Settlements exceeding that amount require Client's prior written approval. Counsel shall provide Client with the terms of any proposed settlement and an accounting of proposed disbursements prior to acceptance.

6. CLIENT COOPERATION

Client shall cooperate with Counsel and shall provide truthful information, execute necessary documents, attend depositions, hearings and trials as reasonably requested, and otherwise assist in the prosecution of the Matter. Failure to cooperate may result in termination of representation and pursuit of fees as provided in Section 7.

7. TERMINATION AND EFFECT OF TERMINATION

Either party may terminate this Agreement upon written notice to the other party. If Counsel is discharged or withdraws for any reason prior to Recovery that results in Counsel's reasonable services having contributed to a later Recovery, Counsel shall be entitled to a reasonable fee based on quantum meruit or as otherwise determined by agreement or a court of competent jurisdiction.

8. CONFLICTS, PRIVILEGE AND CONFIDENTIALITY

Counsel represents that, after reasonable inquiry, Counsel is not aware of a conflict that would prevent representation. Counsel will maintain Client confidences to the extent required by applicable law and professional responsibility rules. Client authorizes Counsel to disclose information as reasonably necessary for the prosecution or resolution of the Matter.

9. RECORDS AND ACCOUNTING

Following any Recovery, Counsel shall provide Client with a written statement showing Gross Recovery, Costs, fees, and any disbursements within days of receipt of funds. Client shall be entitled to reasonable access to case records as required by law.

10. NOTICES

All notices, demands or other communications required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below by hand, certified mail (return receipt requested), or overnight courier.

Client address for notices Counsel address for notices

11. AMENDMENT AND WAIVER

This Agreement may be amended only by a written instrument signed by both parties. No waiver of any provision shall be effective unless in writing and signed by the party waiving compliance. A waiver of any breach shall not constitute a waiver of any subsequent breach.

12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles.

13. ENTIRE AGREEMENT

This Agreement contains the entire understanding of the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, negotiations, and understandings, oral or written, regarding the Matter.

14. SEVERABILITY

If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect and shall be construed so as to effectuate the parties' intent to the fullest extent permitted by law.

15. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Execution by electronic signature or facsimile shall have the same force and effect as an original signature.

Client acknowledges that Client has read this Agreement, understands its terms, has had the opportunity to ask questions, and consents to representation on the terms set forth herein.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Client Name:

Full Name:

By:

Date:

Counsel/Firm Name:

Full Name:

By:

Date:

What a Contingent Fee Agreement Is and When It Applies

A Contingent Fee Agreement is a contract between a client and an attorney in which the attorney’s fee is contingent on a successful outcome, commonly a settlement or judgment. It sets the percentage or formula for payment, allocates responsibility for costs and expenses, and defines the matter covered, exclusions, and termination rights. These agreements are common in personal injury, employment, and certain commercial claims. Properly drafted contingent fee agreements clarify timing for disbursements, client obligations, and dispute resolution to reduce later fee disputes and ethical risk.

Why a Clear Contingent Fee Agreement Matters

A written Contingent Fee Agreement reduces ambiguity about fee splits, expenses, and settlement authority and provides evidence of consent. For e-signing, the ESIGN Act (15 U.S.C. ch. 96) and UETA (where adopted) make electronic execution legally effective when intent, consent, attribution, and record retention are satisfied.

Who Typically Prepares and Signs This Agreement

The Contingent Fee Agreement is used by parties involved in a fee-for-success legal engagement and by administrators managing distribution after recovery.

Individual clients and claimants seeking representation for tort, employment, or debt-collection matters.
Law firms and solo practitioners documenting fee percentage, scope, and billing responsibilities.
Claims administrators, mediators, or settlement agents who allocate recoveries and track disbursements.

Use a clear, signed agreement before substantive legal work begins to protect client rights and the attorney’s fee claim.

Typical Signers and Their Roles

Jordan Reyes, Senior Litigation Partner

Responsible for drafting the agreement terms, confirming the contingency percentage and payment mechanics, and ensuring the agreement complies with applicable ethics rules and state law. Usually signs on behalf of the firm and confirms client counseling about alternatives to contingency billing.

Taylor Morgan, Client / Claimant

Provides informed consent to contingency terms, signs the agreement, and supplies identity and case details. The client must understand expense allocation, settlement authority, and when fees will be deducted from any recovery.

Essential Elements to Include in the Agreement

A professional Contingent Fee Agreement should be explicit about the engagement scope, fee calculation, expense handling, and how disputes and termination are resolved to minimize later disputes.

Parties

Full legal names and capacities of the client and the law firm; include firm address and authorized signatory to avoid ambiguity in enforcement.

Scope of Work

Clear, limited description of the claims or legal matter covered and any tasks or proceedings excluded from the contingency arrangement.

Contingency Formula

Exact percentage(s) or sliding scale tied to recovery stages (settlement, judgment, appeal) and how gross vs. net recovery is measured.

Costs and Expenses

Who advances litigation costs, how they are itemized and repaid, and whether expenses are deducted before or after fee calculation.

Payment Timing

When fees are payable after recovery, trust accounting instructions, and distribution order for liens, taxes, and third-party claims.

Termination & Disputes

Termination rights, fee entitlement if client fires counsel, and dispute resolution mechanisms, including arbitration or court venue.

Step-by-Step: Completing the Agreement

Complete fields in order and confirm both parties sign and date the final version to create a binding record.

01

Prepare Draft: Populate parties, scope, and contingency formula.
02

Review Costs: Specify expense handling and payment order.
03

Client Counseling: Confirm client understands terms and alternatives.
04

Execute Agreement: Collect dated signatures from client and counsel.

Configuring an Online Signing Workflow

Set up authentication and fields before sending to ensure a compliant, auditable electronic execution.

Field	Configuration
Authentication Method	Email link by default; SMS or KBA for higher assurance
Template Name	Save standard contingent fee template for reuse
Conditional Fields	Enable for sliding-scale percentages or expense options
Audit Trail	Enable timestamps, IP logging, and certificate generation

Where to Send and How Signatures Flow

Routing and recipient order determine who signs first and where the executed copy is stored.

Send to Client: Deliver via secure email link or guest signing URL.
Collect Attorney Signature: Firm signs after client or concurrently per workflow.
Record Execution: Save signed PDF with audit trail for retention.
Distribute Copies: Provide parties with final executed version and accounting schedules.

Digital Signing and Technical Considerations

Use an e-signature platform that supports audit trails, conditional fields, and required authentication to document intent.

Authentication: Email links, SMS codes, or KBA per risk profile
File Formats: PDF or DOCX accepted; signed PDFs retain audit data
Integrations: Connect with systems like Salesforce and NetSuite

Ensure the platform used can export a tamper-evident signed PDF and maintain a retrievable audit trail to support enforceability.

Time-Sensitive Dates to Document in the Agreement

Record key timing items so responsibilities and triggers are clear and auditable.

Effective Date:

Start of obligations; use MM/DD/YYYY format.

Settlement Approval Deadline:

Date by which client must accept or reject a proposed settlement.

Payment Disbursement:

Timing for fee transfer after recovery (e.g., within 30 days).

Expense Accounting:

Period to provide an itemized expense statement post-recovery.

Record Retention Start:

Date from which retention periods are measured.

Common Mistakes to Avoid When Drafting

Vague fee language that omits whether costs are deducted before or after the contingency calculation, leading to disputes.
Failing to record an effective date or to have both parties sign the same document version, which raises enforceability questions.
Not specifying who handles liens, subrogation, or third-party claims against the recovery, forcing ad hoc resolution later.
Overlooking state ethics rules or bar approval requirements for contingency percentages in particular practice areas or jurisdictions.

Risks and Potential Consequences of Errors

Fee Dispute: Client litigation over ambiguous percentages

Ethics Sanction: State bar penalties for noncompliance

Withholding: 24% backup withholding for missing TINs

Tax Reporting: Incorrect 1099 treatment may trigger penalties

Accounting Errors: Misallocated expenses affect net recovery

Enforcement Risk: Unsigned or improperly signed agreements may be unenforceable

eSignature Vendor Comparison for Executing Contingent Fee Agreements

Compare basic pricing, trial availability, and core features relevant to electronically executing and storing fee agreements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About Contingent Fee Agreements

Answers to common execution, enforceability, and recordkeeping questions when using electronic or mixed signing approaches.

Need help? Contact support

Can a contingent fee agreement be e-signed?
Yes. Electronic signatures are legally binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted if intent, consent, attribution, and retention are documented.
Is notarization required for validity?
Generally no for contingency contracts, but notarization may be required by local rules in some contexts; check state law or court requirements before relying on it.
What if the client wants to cancel?
Follow the termination clause in the agreement; the attorney may retain fees for work performed and be entitled to reimbursement for advanced costs, depending on the contract.
How do I correct a signed agreement?
Prepare an amendment signed by both parties or a rescission and replacement. Do not alter a signed copy without documented mutual consent.
Who should keep the original executed file?
Both parties should retain the final signed PDF with audit trail; the attorney must also preserve trust accounting records per applicable ethics and tax rules.
How long must I retain the agreement?
Retain for a minimum of 3 years for tax purposes (IRC §6501(a)); keep healthcare-related files 6 years (45 CFR §164.530(j)) and check state-specific rules.

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