Contingency Fee Agreement Template for South Africa

The Contingency Fee Agreement is a crucial legal instrument in South African legal practice, designed to promote access to justice by allowing clients to pursue legal claims without upfront payment of legal fees. This document becomes necessary when clients cannot afford traditional fee arrangements or prefer to link payment to successful outcomes. The agreement must strictly comply with the Contingency Fees Act 66 of 1997, which sets specific requirements including a 25% fee cap and mandatory client protections. It's commonly used in personal injury cases, labor disputes, and civil claims where clients seek damages or compensation. The document must include clear success criteria, fee calculations, risk acknowledgments, and statutory declarations, making it essential for both legal practitioners and clients to understand their rights and obligations.

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

2. Background: Brief description of the legal matter and circumstances leading to the agreement

3. Definitions: Key terms used in the agreement, including 'success', 'normal fees', and 'contingency fees'

4. Scope of Legal Services: Detailed description of legal services to be provided and the specific matter being pursued

5. Success Definition: Clear definition of what constitutes 'success' in the matter, triggering the contingency fee

6. Fee Structure: Detailed explanation of fee calculation, including percentage of award and compliance with 25% cap per Contingency Fees Act

7. Disbursements and Costs: Treatment of case-related expenses and court costs

8. Client's Rights: Statutory rights of the client, including the right to approach the Legal Practice Council

9. Risk Acceptance: Acknowledgment of risks and potential outcomes

10. Termination: Circumstances and process for terminating the agreement

11. General Provisions: Standard contractual provisions including governing law and jurisdiction