contingent fee

Quick Reference

A fee payable only if an activity is successful. For example, a UK estate agent only receives commission if a sale is achieved, and some training establishments offer ‘no pass, no fee’ terms. UK lawyers were previously prevented from charging contingent fees, where they get paid only if they win their client's case, but this was changed in 1998 to allow lawyers to act on a ‘no-win, no-fee’ basis. US lawyers can work on the basis of contingent fees. Contingent fees permit litigants with limited resources to sue.

Subjects: Economics.

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