Fees and agreements

What a lawyer's fee agreement should include

A plain-language checklist for reading an engagement letter or fee agreement before you sign it. 4 min read

Before a lawyer starts work, you should receive a written agreement, often called an engagement letter, retainer agreement or fee agreement. It is a contract, and it is the best protection against misunderstandings later. Read the whole thing, and ask about anything that is unclear before you sign.

1. Who the client is and what the job is

The agreement should say who the lawyer represents (you, your business, or both) and describe the scope of the work: for example, "negotiating and, if necessary, litigating the claim against ABC Company through trial, but not any appeal." Anything outside the scope may need a new agreement or cost extra.

2. How the fee is calculated

Hourly: the rate of each person who may work on the matter, and the billing increment.
Flat fee: the price, exactly what it covers, and when it is earned.
Contingency: the percentage at each stage, and how costs are handled (see contingency fees).

3. Retainer or advance deposit

If you pay money up front, the agreement should say whether it is a deposit against future fees, which the lawyer holds in a client trust account and refunds if unused, or a non-refundable fee, and when you might need to add more. Ethics rules generally require lawyers to refund any advance payment that has not been earned when the representation ends.

4. Costs and expenses

Which expenses you pay, whether the lawyer advances them, and whether you need approval for large ones such as expert witnesses.

5. Billing

How often you will be billed, what detail bills will show, when payment is due, and whether interest is charged on late payments.

6. Communication

How the lawyer will keep you informed, and how decisions, such as accepting a settlement, will be made. In most matters the decision to settle belongs to the client.

7. Ending the relationship

You can generally fire your lawyer at any time, though you may owe fees for work already done. The agreement should explain what you would owe and how your file will be returned. It may also explain when the lawyer can withdraw, for example for non-payment, subject to court approval if a case is pending.

8. Disputes

Some agreements require fee disputes to go to arbitration. Many state bars run fee arbitration programs; ask how disputes would be handled.

Before you sign

Take the agreement home if you need time. Ask for changes if something doesn't match what you discussed. Keep a signed copy. A reputable lawyer will not mind questions about their fee agreement.

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This guide is general information, not legal advice, and laws differ from state to state. For advice about your situation, talk to a lawyer licensed in your state. Last reviewed November 4, 2026.