Can a fee arrangement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes when the signature demonstrates intent, consent, attribution, and record retention capabilities.

When do I need a written fee agreement?

Obtain a written agreement at engagement start or when fee terms change; many state bar rules require written disclosure for contingent fees or complex billing arrangements.

Are notarization or witnesses required?

Most fee arrangements do not require notarization or witnesses, but specific states or related documents (e.g., POAs) may impose such requirements; verify state law when authentication is necessary.

What if a client disputes an invoice?

Follow the dispute notice procedure in the agreement; preserve evidence of signed terms and communications and consider mediation or arbitration if specified by the contract.

How long must I keep executed fee arrangements?

Retain for the engagement term plus commonly at least 3 years; for tax, HIPAA, or regulatory matters follow IRS, HIPAA, or SEC retention periods as applicable.

Can I change fees after signing?

Only by mutual written agreement; unilateral changes risk breach of contract and potential bar complaints—document any agreed amendments clearly and obtain signatures.

Electronic Signature
Templates
Legal
Legal Fee Arrangement

Legal Fee Arrangement

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LEGAL FEE ARRANGEMENT

This Legal Fee Arrangement (the Agreement) is entered into as of by and between Attorney/Law Firm: with principal address: and Client Name: with address: .

RECITALS

WHEREAS, Client desires to retain Attorney to provide legal services in connection with the matter described as:

WHEREAS, Attorney is willing to provide such legal services on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations regarding fees, costs, retainers and payment procedures.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1. "Client" means the party identified above who retains Attorney for legal services. "Attorney" means the law firm or attorney identified above who provides legal services under this Agreement. "Services" means the legal services described in Section 2.

2. SCOPE OF REPRESENTATION

2.1. Attorney shall provide legal services to Client in connection with the matter described above. The specific tasks, limitations and deliverables are:

2.2. Services shall not include matters outside the stated scope unless the parties agree in writing to an amendment.

3. FEE STRUCTURE

3.1. The parties agree that the fee for Services will be determined as follows (select applicable method(s) and complete fields):

Hourly fee. Attorney's hourly rates are: per hour for attorney time. Billing increment:

Flat fee. Flat fee amount: Payment schedule:

Contingency fee. Percentage: on recovery. Client is responsible for costs and expenses as described below:

3.2. Fees for services rendered by paralegals or other staff may be billed at lower rates. Time spent will be recorded and billed in accordance with Attorney's regular billing practices.

4. RETAINER AND TRUST ACCOUNT

4.1. Client shall deposit an initial retainer in the amount of to be held in Attorney's trust account. The retainer will be applied to fees and costs as billed. Any unearned portion will be refunded upon final accounting.

4.2. If the retainer balance is depleted, Client shall replenish the retainer upon notice. Failure to do so may result in suspension of services until replenishment.

5. BILLING AND PAYMENT

5.1. Attorney will render periodic statements (monthly unless otherwise agreed) describing services rendered and costs advanced. Payment is due within days of receipt. Unpaid balances shall accrue interest at or the maximum lawful rate, whichever is less.

5.2. Client shall reimburse Attorney for all costs and expenses reasonably incurred on Client's behalf, including but not limited to court fees, expert fees, deposition costs, travel, courier and document production expenses.

Estimated costs to be advanced by Client (if any)

6. COSTS, EXPENSES AND ADVANCES

6.1. Attorney may advance costs and expenses on Client's behalf, subject to Client's obligation to repay such advances. Attorney may require an advance deposit for anticipated costs.

7. FEE DISPUTES AND RESOLUTION

7.1. In the event of a dispute regarding fees or costs, the parties agree to attempt to resolve the dispute in good faith through an internal review and, if unresolved, through mediation. If mediation is unsuccessful, the dispute shall be submitted to binding arbitration under the rules selected by the arbitrator, and judgment on the award may be entered in any court of competent jurisdiction.

7.2. This clause does not prevent either party from seeking interim relief in a court of competent jurisdiction where necessary to preserve rights or property.

8. TERMINATION OF REPRESENTATION

8.1. Client may terminate Attorney's representation at any time upon written notice. Attorney may withdraw from representation for good cause, including Client's failure to pay fees or cooperate, or as otherwise permitted by applicable rules of professional conduct. Upon termination, Client shall pay Attorney for all services performed and costs incurred through the effective date of termination.

9. CONFIDENTIALITY AND PRIVILEGE

9.1. Attorney shall maintain the confidentiality of Client information and assert the attorney-client privilege where applicable. Client acknowledges that communications necessary for representation may be disclosed to third parties when required for the provision of Services or by law.

10. CONFLICTS OF INTEREST

10.1. Attorney has performed a reasonable conflicts check based on information provided by Client. Client agrees to promptly notify Attorney of any facts that may give rise to a conflict. If a conflict arises that cannot be waived, Attorney may be required to withdraw.

11. NOTICES

11.1. All notices under this Agreement shall be in writing and delivered to the addresses set forth below (or to such other address as either party may designate by written notice). Notice is effective upon personal delivery, recognized overnight courier delivery, or three days after deposit in the U.S. mail, postage prepaid.

Attorney Notice Address Client Notice Address

12. AMENDMENTS AND WAIVER

12.1. This Agreement may be amended only by a written instrument signed by both parties. No failure or delay by either party in exercising any right under this Agreement shall operate as a waiver of that right.

13. GOVERNING LAW

13.1. This Agreement shall be governed by and construed in accordance with the laws of the state specified below without regard to its conflict of laws rules.

Governing Law State

14. ENTIRE AGREEMENT

14.1. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations, whether oral or written.

15. SEVERABILITY

15.1. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

16. MISCELLANEOUS

16.1. The obligations of Client under this Agreement shall survive the termination of the attorney-client relationship to the extent necessary to satisfy outstanding fees and costs. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one instrument.

Additional Terms or Special Instructions

Attorney / Firm:

By:

Date:

Client:

By:

Date:

What a Legal Fee Arrangement Is and when it applies

A Legal Fee Arrangement is a written agreement between a client and legal service provider that defines scope of services, fee structure, billing intervals, retainer terms, expense reimbursement, and dispute resolution. It clarifies expectations for hourly rates, flat fees, contingency splits, or blended pricing and sets timelines for invoicing and payment. Well-drafted arrangements reduce billing disputes, preserve attorney-client understanding, and document authorization for costs such as court filing fees, expert witnesses, or outside counsel.

Why formalizing fees in writing matters

A clear written fee arrangement protects both client and firm by documenting agreed pricing, payment milestones, and termination consequences. It supports billing accuracy, client consent for expenses, and enforceability in fee disputes under state professional conduct rules and contract law; electronic versions are admissible under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes when execution requirements are satisfied.

Who commonly completes a Legal Fee Arrangement

Typical users include law firm intake staff, solo practitioners, in-house counsel, billing administrators, and clients who need documented fee terms.

Law firms and solo attorneys preparing engagement terms for new matters or modified scope.
In-house legal departments documenting external counsel retainers or alternative fee arrangements.
Clients (individuals and businesses) agreeing to retainer amounts, contingency splits, or fixed-fee projects.

Use the arrangement whenever a new client relationship begins, scope changes, or fee structure is modified to ensure mutual understanding and reduce later disputes.

Step-by-step: completing a Legal Fee Arrangement

Follow these core steps to prepare and finalize a Legal Fee Arrangement so it is clear, enforceable, and ready for signing.

01

Draft core terms: Describe scope, duties, exclusions, and estimated timeline.
02

Set fees: Specify hourly rates, flat fees, contingency percentages, and retainers.
03

Add billing mechanics: Define invoicing schedule, payment methods, and late fees.
04

Authorize expenses: List reimbursable costs, pre-approval thresholds, and disbursement handling.

How to configure an online fee arrangement workflow

Set up the document so parties receive, sign, and store executed copies automatically while preserving an audit trail.

Field	Configuration
Signature	Required; date stamp and signer name auto-captured
Initials	Optional per-clause acknowledgement fields
Payment	Enable request payments for upfront retainer if supported
Audit Log	Capture IP, timestamp, and action history for each signer

Where the completed arrangement goes next

After signing, route the executed arrangement to billing, client file, and authorized approvers to maintain compliance and access.

Billing System: Upload PDF to invoicing or practice management software for retainer posting.
Client Record: Store executed copy in the client's file with indexing metadata.
Accounting: Send billing terms and retainer details to accounting for trust accounting.
Archive: Retain long-term copy in records retention system per retention schedule.

Digital signing considerations and platform needs

Choose a signing platform that supports legal evidence capture, audit trails, and required integrations for your practice.

Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace, and practice management integrations streamline recordkeeping.
File formats: Support for PDF and DOCX preserves formatting and long-term accessibility.
Authentication: Email, SMS code, and optional KBA or advanced signer authentication available depending on risk.

Core elements every Professional Legal Fee Arrangement should include

A comprehensive arrangement balances clarity for the client and protections for the law firm; ensure each element is present and unambiguous.

Scope of Work

Define services, exclusions, and project or matter milestones so both parties understand what is covered by the fee.

Fee Structure

State hourly rates, flat fees, contingency splits, or blended arrangements and whether rates change over time.

Retainer & Billing

Specify retainer amount, trust handling rules, invoice frequency, payment methods, and late payment terms.

Costs & Expenses

List reimbursable expenses (filing fees, expert costs, travel) and whether pre-approval is required for larger items.

Termination

Describe grounds for termination, notice requirements, and handling of outstanding bills and file custody.

Dispute Resolution

Include arbitration or venue clauses, choice of law, and attorney fee provisions if applicable.

Required information to include on the arrangement

Parties: Client and firm legal names are required.

Effective Date: Start date of engagement in MM/DD/YYYY.

Fee Terms: Hourly rate, flat fee, or contingency specified.

Retainer Details: Amount and trust accounting instructions.

Expense Policy: Scope and approval thresholds for costs.

Signatures: Signed by authorized representative(s).

Common preparation and execution mistakes to avoid

Using undefined terms like 'reasonable efforts' that create ambiguity in scope or billing.
Failing to document retainer replenishment rules, which causes trust accounting disputes.
Leaving payment timing unspecified, resulting in late-payment conflicts and collection issues.
Not capturing explicit client consent for contingency or success-fee formulas, risking enforceability.

Consequences of an incorrect or missing fee agreement

Fee Disputes: Client may challenge charges; arbitration or bar complaints can follow.

Trust Accounting Errors: Misapplied retainers can violate state bar rules and require remediation.

Collection Risk: Courts may limit recovery without clear written terms.

Regulatory Sanctions: Failure to comply with state ethics rules may trigger discipline.

Tax Reporting: Incorrect payer/payee details can cause IRS information return penalties.

Client Loss: Poorly defined expectations increase client churn and reputational harm.

Typical timelines, deadlines, and processing expectations

Track key dates: effective date, billing cycles, retainer replenishment points, and deadlines for expense approvals to prevent interruptions in service.

Effective Date:

MM/DD/YYYY — engagement and billing commence on this date.

Initial Retainer Due:

Due at engagement acceptance or as specified in the arrangement.

Invoice Frequency:

Monthly, biweekly, or milestone-based as specified in the agreement.

Dispute Notice:

Client should notify firm within stated days (e.g., 30 days) to dispute invoices.

Record Retention Start:

Retention clock starts on the effective date or when the matter closes.

Key milestones from engagement to archive

Sequence of milestone stages typically tracked from intake through archival to ensure compliance and timely billing.

01

Engagement Accepted

Client signs arrangement and initial retainer is paid.

02

Work Commences

Lawyer begins substantive work and logs billable time.

03

Ongoing Billing

Regular invoices issued per schedule and replenishments collected.

04

Matter Closure

Final invoice issued, file closed, and client notified.

eSignature vendor pricing and basic feature comparison

A concise comparison of starting prices and selected feature differences for common eSignature providers; signNow is listed first per comparison convention.

	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 trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Examples: how firms and clients use Legal Fee Arrangements

Real-world scenarios show how arrangements clarify expectations and reduce billing friction.

Small Firm Retainer

A solo practice used a written retainer to define hourly billing and replenish triggers

The retainer prevented trust account misapplication
After adoption, the firm reported fewer client disputes and clearer collections workflow.

In-house Counsel External Retainer

An in-house legal team formalized outside counsel retainers with expense caps

The agreement required pre-approval for experts
The change improved budget forecasting and reduced surprise invoices to the business unit.

Practical tips for accurate and efficient completion

Follow these best practices to minimize disputes and administrative overhead when using a Legal Fee Arrangement.

Use plain language

Write fee terms simply and avoid legalese; clear language reduces misunderstandings and enforcement costs.

Document changes

Any modification to fees or scope should be signed and dated to prevent later disagreement.

Preserve audit evidence

Capture timestamps, signer identity, and delivery receipts when using electronic signing platforms.

Coordinate billing

Ensure accounting, billing, and trust ledgers receive copies of the executed arrangement for accurate posting.

Frequently asked questions about Legal Fee Arrangements

Answers to common questions about drafting, signing, and enforcing fee arrangements in the United States.

Need help? Contact support

Can a fee arrangement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes when the signature demonstrates intent, consent, attribution, and record retention capabilities.
When do I need a written fee agreement?
Obtain a written agreement at engagement start or when fee terms change; many state bar rules require written disclosure for contingent fees or complex billing arrangements.
Are notarization or witnesses required?
Most fee arrangements do not require notarization or witnesses, but specific states or related documents (e.g., POAs) may impose such requirements; verify state law when authentication is necessary.
What if a client disputes an invoice?
Follow the dispute notice procedure in the agreement; preserve evidence of signed terms and communications and consider mediation or arbitration if specified by the contract.
How long must I keep executed fee arrangements?
Retain for the engagement term plus commonly at least 3 years; for tax, HIPAA, or regulatory matters follow IRS, HIPAA, or SEC retention periods as applicable.
Can I change fees after signing?
Only by mutual written agreement; unilateral changes risk breach of contract and potential bar complaints—document any agreed amendments clearly and obtain signatures.

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