Costs Agreement for Hong Kong

Costs Agreement Template for Hong Kong

A Costs Agreement is a formal contractual document used in Hong Kong that establishes the terms and conditions of legal service fees between a law firm and its client. The agreement complies with Hong Kong's Legal Practitioners Ordinance and Law Society guidelines, detailing fee structures, billing arrangements, scope of services, and payment terms. It serves as a crucial document that provides transparency and certainty regarding legal costs, while protecting both the law firm's and client's interests under Hong Kong law.

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What is a Costs Agreement?

The Costs Agreement is a fundamental document required for establishing professional relationships between law firms and clients in Hong Kong. It serves as a comprehensive contract that outlines the financial terms and conditions of legal services, ensuring compliance with Hong Kong's Legal Practitioners Ordinance and professional conduct rules. This document is typically used at the commencement of a legal engagement or when updating existing fee arrangements. The Costs Agreement includes essential information such as fee structures, billing methods, payment terms, scope of services, and client obligations. It provides clarity and protection for both parties while meeting regulatory requirements for legal service fee arrangements in Hong Kong.

What sections should be included in a Costs Agreement?

1. Parties: Identification of the law firm and the client, including full legal names and addresses

2. Background: Context of the engagement and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including billing terminology

4. Scope of Services: Clear description of legal services to be provided and any limitations

5. Fee Structure: Detailed explanation of how fees will be calculated (hourly rates, fixed fees, etc.)

6. Billing and Payment Terms: Frequency of billing, payment deadlines, and acceptable payment methods

7. Disbursements and Other Costs: Treatment of out-of-pocket expenses and third-party costs

8. Client Obligations: Client's responsibilities including providing information and instructions

9. Confidentiality: Obligations regarding confidential information and client privilege

10. Conflicts of Interest: Handling of actual or potential conflicts

11. Termination: Circumstances and process for ending the agreement

12. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Costs Agreement?

1. Multiple Jurisdictions: Required when legal services may involve multiple jurisdictions

2. Third Party Funding: Include when litigation funding arrangements are involved

3. Interest on Overdue Amounts: Optional section for charging interest on late payments

4. File Retention: Details about document retention policies if relevant to the engagement

5. Intellectual Property: Include for matters involving IP rights or creation of materials

6. Anti-Money Laundering: Additional compliance requirements for high-risk matters

7. Force Majeure: Include for long-term engagements or complex matters

8. Alternative Fee Arrangements: For cases involving success fees or alternative billing structures

What schedules should be included in a Costs Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of hourly rates for different staff levels

2. Schedule 2 - Disbursements Schedule: List of standard disbursements and their charges

3. Schedule 3 - Scope of Work: Detailed description of specific matters or cases covered

4. Schedule 4 - Key Personnel: List of key lawyers and staff assigned to the matter

5. Appendix A - Terms and Conditions: Standard terms and conditions of engagement

6. Appendix B - Client Care Information: Information about complaint procedures and client care policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Demand Letter

Cost

Free to use
Relevant legal definitions
Relevant Industries

Legal Services

Financial Services

Banking

Insurance

Real Estate

Technology

Manufacturing

Healthcare

Retail

Construction

Energy

Transportation

Telecommunications

Professional Services

Education

Relevant Teams

Legal

Finance

Procurement

Risk and Compliance

Corporate Secretariat

Operations

Administrative Services

Executive Office

Relevant Roles

General Counsel

Legal Director

Chief Legal Officer

Chief Financial Officer

Finance Director

Procurement Manager

Contract Manager

Legal Operations Manager

Managing Partner

Senior Partner

Company Secretary

Risk Manager

Compliance Officer

Corporate Counsel

Legal Administrator

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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