The relationship between lawyer and client is based on trust, but also on financial transparency. The fee agreement is the contractual foundation of this relationship. It precisely defines the terms of remuneration and protects both parties. As part of the professional management of your firm, it is essential to understand the rules governing the obligation of this agreement, in order to avoid any disputes. Formalizing this agreement, notably by electronic signature, guarantees its legal validity.

What is the mandatory lawyer’s fee agreement?

The fee agreement is a written contract formalizing the agreement between the lawyer and his client on the financial terms of the legal service. Article 10 of the law of December 31, 1971, specified by decree no. 2005-790 of July 12, 2005, regulates this obligation. This document specifies the amount or method of calculation of fees, as well as ancillary expenses. The agreement must be kept for at least 5 years, in accordance with the profession’s accounting and ethical obligations.

This agreement is mandatory in certain situations defined by law. It guarantees transparency and avoids misunderstandings about billing and fees. The National Internal Regulations of the legal profession (RIN) also impose strict ethical rules in this area.

The absence of a written agreement in cases where it is mandatory exposes the lawyer to significant ethical risks. Disciplinary sanctions imposed by the Conseil de l’Ordre are graduated: warning, reprimand, temporary ban on practising (for up to 3 years), or even disbarment in the most serious cases. In addition to sanctions, the absence of an agreement can considerably complicate the recovery of fees in the event of a dispute with the customer.

When is a fee agreement mandatory?

By law, a written fee agreement must be drawn up as soon as the foreseeable amount of fees exceeds 1,500 euros. This threshold applies to the entire assignment, not to each individual act. For successive missions entrusted by the same customer, the cumulative fees for all services must be taken into account to determine whether the threshold has been reached.

The agreement also becomes mandatory for the first relationship with a client, regardless of the amount involved. A “new client” is defined as any individual or legal entity who has not previously entrusted the lawyer with an assignment. For existing clients with whom the lawyer has already worked, a new agreement is still strongly recommended for any new assignment that differs significantly from the previous one, or when a significant amount of time has elapsed since the last collaboration.

Certain special situations reinforce this obligation. For example, in divorce cases, the agreement clarifies divorce fees from the outset. For complex or lengthy procedures, it secures the contractual relationship and avoids any misunderstandings about the evolution of costs.

For clients receivingfull legal aid, there is no need to sign an agreement concerning the portion covered by the State, since fees are set by scale. However, the lawyer must inform the client in writing of any additional fees not covered by the aid. In the case of partial legal aid, this obligation to inform the client in writing of the amount to be paid by the client becomes all the more important to guarantee financial transparency.

What should a compliant fee agreement contain?

A complete fee agreement must include a number of compulsory details. It identifies the parties (lawyer and client), precisely describes the mission entrusted to them and sets out the terms and conditions of their remuneration.

The calculation terms and conditions form the core of the document. You can opt for different types of fee, depending on the nature of the assignment. Flat-rate fees are suitable for well-defined assignments (e.g.: “For drafting a commercial lease agreement, a flat-rate fee of 1,800 euros excluding VAT has been agreed”). Time-based fees apply to projects of uncertain duration (example: “Fees calculated on the basis of an hourly rate of 250 euros excluding VAT, with an estimated time of 10 to 15 hours”).

Result-based fees (additional fees linked to success) can be added to a basic fee, but are strictly regulated. Lawyers may not bill solely on the basis of results (quota litis pact prohibited by article 10 of the 1971 law), and must always provide for a minimum fee independent of the result. Additional fees may not exceed twice the basic fee.

The agreement must also specify the costs and disbursements in addition to the fees. These include travel expenses, court fees, expert fees and any other costs required to carry out the assignment.

Payment terms must be detailed. You can provide for retainers (e.g.: “A retainer of 2,000 euros is requested on signature of this agreement, to be deducted from the final fee”). A schedule can be drawn up for longer assignments. The conditions under which fees may be revised must be explicitly stated.

The agreement must stipulate the terms and conditions for terminating the retainer agreement, and what happens to the fees in the event of early termination of the retainer, whether at the client’s or the lawyer’s initiative.

Practical aspects of signing: The agreement must be drawn up in two original copies. Each party retains a signed copy. The lawyer must hand over the client’s copy before the start of the engagement, or at the latest at the time of the first act. Electronic signatures are now permitted, facilitating these exchanges and guaranteeing the legal value of the document.

The consequences of not signing an agreement

Failure to sign a fee agreement, where this is compulsory, exposes the lawyer to significant ethical risks. The Conseil de l’Ordre can impose graduated sanctions: warning, reprimand, temporary ban on practising (for up to 3 years), or even permanent disbarment in the event of repeated breaches. The systematic absence of a written agreement constitutes a serious breach of professional ethics which may compromise the lawyer’s career in the long term.

In terms of fee collection, the practical consequences are just as worrying. In the event of a dispute, the absence of a written agreement reverses the burden of proof: the lawyer will have to demonstrate that the client had been informed and had accepted the fee conditions, which is often difficult to prove. The Bâtonnier (President of the Bar) or the judge may then set the fees according to custom, generally at a lower amount than that claimed. According to case law, fees may be reduced by 20 to 50% in the absence of a formal agreement.

The procedure for appealing to the Bâtonnier follows a strict framework defined by article 174 of the 1991 decree. Before taking any legal action, the matter must be referred to the Bâtonnier. The Bâtonnier has 4 months to give his opinion on the dispute. Without a prior agreement, the client has strong arguments to contest the amounts invoiced, citing the absence of clear information. The lawyer risks not only having his fees reduced, but also having to bear the costs of the proceedings.

Beyond the financial aspects, the relationship of trust with the customer is profoundly weakened. Misunderstandings on financial issues can damage a professional partnership and the firm’s reputation. The 5-year statute of limitations on fee claims can also be more easily contested in the absence of a written agreement, as the starting point of the period becomes uncertain. This legal uncertainty fully justifies the systematic use of written agreements, even when not formally required by law.

Optimize management of your fee agreements

Beyond legal obligations, the methodical organization of your fee agreements is a major management challenge. A number of best practices can help you secure this crucial stage in the customer relationship.

The pre-signature checklist guarantees the completeness of your agreement. Systematically check: complete identification of the parties, precise description of the work entrusted to us, detailed calculation of fees, list of foreseeable ancillary expenses, payment terms (retainer, payment schedule), and any revision conditions. This methodical verification prevents oversights that can lead to litigation.

The preliminary meeting with the customer deserves special attention. Allow 15 to 30 minutes to explain each clause of the agreement. It’s an opportunity to clarify mutual expectations and answer questions. It builds trust and considerably reduces the risk of misunderstandings later on.

Organized storage of signed agreements is a practical and ethical necessity. Keep proof of delivery to the customer (acknowledgement of receipt, confirmation email, etc.). Classify documents by customer and by year, maintaining a digital archive with regular back-ups. This organization facilitates rapid consultation in case of need.

Standard templates save you considerable time. Create 3 to 5 templates tailored to your firm’s recurring assignments: litigation, ad hoc advice, ongoing assistance, real estate transactions, business law. These templates can be customized to ensure conformity and consistency in your practices. Plan an annual review to incorporate legal and regulatory changes.

Modern invoicing tools can facilitate the creation of compliant agreements, but the key is methodological rigor: use of validated models, systematic adaptation to each situation, and organized storage of signed documents. The dematerialization of invoices and agreements also simplifies the archiving and traceability of your documents.

Mastering the rules of the compulsory fee agreement protects your practice and strengthens the trust of your customers. By combining legal rigor and methodical organization, you can optimize your management while complying with your ethical obligations. This professional approach is a major asset for the sustainability and development of your business.

Signing and handing over the agreement: steps to follow

The formalization of the fee agreement follows a rigorous process that guarantees its legal validity. The agreement must be drawn up in two original copies, each signed by the lawyer and the client. This double signature formalizes the parties’ agreement on the financial terms of the engagement.

The timing of delivery is crucial: a copy must be sent to the customer before the actual start of the assignment or, at the latest, at the time of the first significant act in the procedure. This timing requirement is designed to ensure that the client has all the financial information at his disposal before making a full commitment.

To avoid any subsequent disputes, we strongly recommend that you :

• Keep tangible proof of delivery (postal acknowledgement of receipt, e-mail confirmation, signed delivery slip)
• Organize an explanatory interview to ensure that the customer fully understands the terms of the agreement
• Pay particular attention to explaining how fees are calculated and how they can be revised.

The digitization of legal practices has also had an impact on this process. Electronic signatures are now accepted for fee agreements, provided they comply with the requirements of the European eIDAS regulation, which guarantees their authenticity and integrity.

Finally, don’t forget that the agreement must be kept for at least 5 years after the end of the assignment, in accordance with the profession’s accounting and ethical obligations. This retention can be physical or digital, the key being to be able to produce the document if necessary.
This administrative step, although sometimes perceived as a formality, in reality constitutes essential legal protection for both the lawyer and his client.