The Conditional Fee Agreement is a specialized legal document used in Austria to establish alternative fee arrangements between legal service providers and their clients. This agreement type is particularly relevant when clients seek to align legal costs with successful outcomes, though it must operate within Austria's more conservative regulatory framework compared to some other jurisdictions. The document becomes necessary when parties wish to structure legal fees based on defined success criteria, typically in litigation, dispute resolution, or other significant legal matters. It includes comprehensive details about fee calculations, success definitions, payment terms, and risk allocation, while ensuring compliance with Austrian legal requirements, particularly the Austrian Attorneys' Act (RAO) and related professional regulations. The agreement is especially useful for cases where traditional hourly billing may not be optimal or where client and attorney interests need to be closely aligned.
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1. Parties: Identification of the attorney/law firm and the client, including full legal names, addresses, and registration details
2. Background: Context of the legal matter and purpose of the conditional fee arrangement
3. Definitions: Key terms used in the agreement, including 'Success', 'Base Fee', 'Success Fee', and other relevant terminology
4. Scope of Services: Detailed description of the legal services to be provided
5. Success Criteria: Clear and specific definition of what constitutes 'success' for the purpose of triggering the conditional fee
6. Fee Structure: Detailed explanation of the base fee (if any) and the conditional fee arrangement, including calculation methods
7. Payment Terms: Timing and method of payment, including handling of disbursements and third-party costs
8. Client Responsibilities: Client's obligations including providing information, documents, and cooperation
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Governing Law and Jurisdiction: Specification of Austrian law as governing law and jurisdiction for disputes
1. Conflict Resolution: Specific procedures for resolving disputes, used when parties want to specify mediation or particular arbitration procedures
2. Third Party Funding: Terms relating to any third-party litigation funding, included when external funding is involved
3. Insurance Arrangements: Details of any relevant legal expenses insurance, included when insurance is part of the arrangement
4. Multiple Party Provisions: Additional terms for cases involving multiple clients, used when representing more than one party
5. Regulatory Compliance: Specific provisions relating to regulatory requirements, included for regulated industries or matters
6. Confidentiality: Detailed confidentiality provisions, included when handling sensitive information or at client's request
1. Schedule 1 - Fee Calculation: Detailed methodology for calculating the conditional fee, including percentages, thresholds, and examples
2. Schedule 2 - Success Criteria Details: Comprehensive description of success scenarios and corresponding fee implications
3. Schedule 3 - Disbursements: List of anticipated disbursements and how they will be handled
4. Schedule 4 - Service Scope Details: Detailed breakdown of included and excluded services
5. Appendix A - Power of Attorney: Standard power of attorney form as required under Austrian law
6. Appendix B - Client Information Form: Required client information and verification documents
Relevant legal definitions
Clauses
Relevant Industries
Legal Services
Financial Services
Insurance
Construction
Real Estate
Manufacturing
Technology
Healthcare
Energy
Telecommunications
Professional Services
Retail
Transportation
Relevant Teams
Legal
Finance
Compliance
Risk Management
Operations
Business Development
Corporate Governance
Procurement
Executive Management
Dispute Resolution
Relevant Roles
General Counsel
Legal Director
Chief Legal Officer
Head of Legal
Legal Operations Manager
Chief Financial Officer
Managing Partner
Senior Partner
Litigation Partner
Risk Manager
Compliance Officer
Legal Project Manager
Finance Director
Corporate Secretary
Business Development Manager
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