What is the difference between a contingency fee and a conditional fee?

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The Difference Between a Contingency Fee and a Conditional Fee

When it comes to legal fees, there are a variety of different arrangements that can be made between a solicitor and their client. One of the most common arrangements is a contingency fee, which is when a solicitor will take a percentage of the total amount of money that is recovered in a case. This type of fee is often used in personal injury cases, where the solicitor will only receive payment if the case is successful.

A conditional fee is another type of fee arrangement that can be used in legal cases. This type of fee is different from a contingency fee in that the solicitor will charge their client the usual charge out rate, plus an uplift, if they have successfully pursued their clients’ case. If the case is not successful, then no fee, or a reduced fee, will be payable.

The main difference between a contingency fee and a conditional fee is that with a contingency fee, the solicitor will only receive payment if the case is successful. With a conditional fee, the solicitor will receive payment regardless of the outcome of the case. This means that if the case is unsuccessful, the solicitor will still receive payment for their work.

Another difference between a contingency fee and a conditional fee is that with a contingency fee, the solicitor will usually take a percentage of the total amount of money that is recovered in the case. With a conditional fee, the solicitor will usually charge a fixed fee, which is agreed upon in advance.

When deciding which type of fee arrangement is best for a particular case, it is important to consider the individual circumstances of the case and the solicitor’s experience and expertise. It is also important to consider the potential risks and rewards associated with each type of fee arrangement.

In conclusion, the difference between a contingency fee and a conditional fee is that with a contingency fee, the solicitor will only receive payment if the case is successful. With a conditional fee, the solicitor will receive payment regardless of the outcome of the case. It is important to consider the individual circumstances of the case and the solicitor’s experience and expertise when deciding which type of fee arrangement is best for a particular case.

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