Conditional Costs Agreement Template for Hong Kong

The Conditional Costs Agreement is a crucial document used in Hong Kong legal practice when establishing alternative fee arrangements between law firms and their clients. This agreement type is particularly relevant in cases where clients seek to align legal costs with successful outcomes, though it must be carefully structured to comply with Hong Kong's regulatory framework. The document typically includes detailed provisions about success criteria, fee calculations, payment triggers, and risk allocations. Given Hong Kong's traditional restrictions on contingency fees, these agreements require careful drafting to ensure they remain within permitted boundaries while providing clarity on the conditional nature of the fee arrangement. The agreement is commonly used in commercial litigation, arbitration, and other dispute resolution matters where success-based fee structures are appropriate and permissible under Hong Kong law.

1. Parties: Identification of the law firm and the client, including full legal names and contact details

2. Background: Context of the legal matter and the basis for entering into a conditional costs agreement

3. Definitions: Key terms used throughout the agreement, including specific definition of the 'condition' that triggers fee payment

4. Scope of Legal Services: Detailed description of the legal services to be provided under the agreement

5. Conditional Payment Terms: Specific conditions that must be met for fees to become payable, including clear definition of 'success'

6. Calculation of Legal Costs: Detailed breakdown of how legal costs will be calculated, including hourly rates and other charges

7. Payment Obligations: Explanation of when and how payments must be made once conditions are met

8. Client's Rights and Obligations: Clear statement of client's responsibilities and rights under the agreement

9. Law Firm's Rights and Obligations: Statement of the law firm's duties and rights under the agreement

10. Termination: Circumstances under which the agreement can be terminated and the consequences

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction