Fee Agreement Template
All states
What Is a Fee Agreement?
A fee agreement is a written document where one person promises to pay another person for a service. It clearly states what the service is, how much it costs, when payment is due, and other important terms. It is used to explain the payment type (hourly, monthly, or project-based), timeframe (paid in advance, paid upon completion, or paid periodically during the work), dispute management instructions, and other essential details.
When Should a Fee Agreement Contract Be Used?
You can use a fee sharing agreement sample in many situations, such as:
- When hiring a lawyer or accountant;
- If you're offering consulting or freelance services;
- When paying someone for a creative project, like writing or graphic design;
- If you're being paid as a contractor or freelancer;
- When offering maintenance or repair services;
- For tutoring, coaching, or teaching services;
- When agreeing on payment for a series of services over time.
Although other contracts may be required, there are instances of engagement between an individual or entity and a professional when a fee agreement contract is not relevant. Such instances may include:
- Volunteer work — If you offer your services to an individual or organization as a volunteer, you will not need a fee agreement because there is no expectation of payment.
- Pro bono services — A fee agreement is not necessary when a professional extends his or her service for free or as part of a pro bono initiative.
- Informal arrangements — Friends or family who have informal arrangements will not need sample fee agreements.
How Do I Write a Fee Agreement?
Simple fee agreement forms are frequently used in different situations and do not require any special legal knowledge. Use the fee agreement template to simplify the task. Here's a step-by-step guide to help you:
Fill in the names and contact information of both parties.
Explain what services will be provided. Be clear and specific so there is no confusion about what work is being done.
Write how much the client agrees to pay. Include when the payments are due — whether it's one-time, weekly, monthly, or after reaching milestones. Mention if there are any late fees or extra charges.
Mention how long the agreement will last. This could be for one project, for a set number of hours, or ongoing until one person ends it. Also, explain how either party can end the agreement if needed.
If the service provider has any extra costs (like travel or materials), write who will cover those. Include details on what will happen if more work is needed beyond the original agreement.
Write which state's laws will apply to the agreement.
Both the client and the service provider must sign and date the agreement.
If you're ever unsure about anything you're adding to the fee for service agreement template, especially legal terms, it's a good idea to speak with a lawyer first. A clear agreement can save you from big problems later.
State Law
The legislation on fee agreements depends on the specific industry in which a particular agreement applies. For example, legal fees are mainly regulated by the American Bar Association’s Model Rules of Professional Conduct.
The following table lists information about attorney fees in a few select states.
California
If it is reasonably foreseeable that the total expense to a client, including attorney fees, will exceed one thousand dollars ($1,000), the contract for services in the case shall be in writing. At the time the contract is entered into, the attorney shall provide a duplicate copy of the contract signed by both the attorney and the client, or the client’s guardian or representative, to the client or the client’s guardian or representative. The written contract shall contain all of the following:
(1) Any basis of compensation, including but not limited to hourly rates, statutory fees or flat fees, and other standard rates, fees, and charges applicable to the case.
(2) The general nature of the legal services to be provided to the client.
(3) The respective responsibilities of the attorney and the client as to the performance of the contract
Florida
Rule 4-1.5 - FEES AND COSTS FOR LEGAL SERVICES
Illegal, Prohibited, or Clearly Excessive Fees and Costs. A lawyer must not enter into an agreement for, charge, or collect an illegal, prohibited, or clearly excessive fee or cost or a fee generated by employment that was obtained through advertising or solicitation not in compliance with the Rules Regulating The Florida Bar.
A fee or cost is clearly excessive when:
(1) after a review of the facts, a lawyer of ordinary prudence would be left with a definite and firm conviction that the fee or the cost exceeds a reasonable fee or cost for services provided to such a degree as to constitute clear overreaching or an unconscionable demand by the lawyer; or
(2) the fee or cost is sought or secured by the lawyer by means of intentional misrepresentation or fraud upon the client, a nonclient party, or any court as to either entitlement to or amount of the fee.
Florida Court Rules, Chapter 4, Rule 4.1.5 — Fees and costs for Legal Services
Illinois
Rule 1.5 — Fees
A lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses. The factors to be considered in determining the reasonableness of a fee include the following:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent.
Illinois Court Rules, Illinois Supreme Court Rules, Article VIII, Rule 1,5 Fees
Massachusetts
Rule 1.5 Fees
A lawyer shall not enter into an agreement for, charge, or collect an illegal or clearly excessive fee or collect an unreasonable amount for expenses. The factors to be considered in determining whether a fee is clearly excessive include the following:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and
(8) whether the fee is fixed or contingent.
Massachusetts Court Rules, chapter 3, rule 3:07, Part1, Rule 1.5-Fees
Texas
Rule 1.04 — Fees
A lawyer shall not enter into an arrangement for, charge, or collect an illegal fee or unconscionable fee. A fee is unconscionable if a competent lawyer could not form a reasonable belief that the fee is reasonable.
Factors that may be considered in determining the reasonableness of a fee include, not to the exclusion of other relevant factors, the following:
(1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer performing the services; and
(8) whether the fee is fixed or contingent on results obtained or uncertainty of collection before the legal services have been rendered.
Texas Disciplinary Rules of Professional Conduct, Client-lawyer Relationship — Rule 1.04 Fees
