Which statement correctly describes a requirement of a Conditional Fee Agreement (CFA)?

Which statement correctly describes a requirement of a Conditional Fee Agreement (CFA)?

• A. It must be in writing only.
• B. It can be verbal.
• C. It must be registered with the court.
• D. It must be in writing and state the percentage of any success fee.

Answer: (D)

A Conditional Fee Agreement is an arrangement where the lawyer’s fee depends on the outcome, so it must be clear and enforceable. That requires the agreement to be in writing and to state exactly how the success fee is calculated, usually as a percentage uplift on the base charges. The written form protects the client by making the terms explicit and prevents disputes about what can be charged if the case succeeds. There’s no requirement to register a CFA with the court, and CFAs cannot be verbal; the essential elements are writing and a stated method or percentage for the success fee. That’s why the statement describing both of these points is the correct one.

A Conditional Fee Agreement is an arrangement where the lawyer’s fee depends on the outcome, so it must be clear and enforceable. That requires the agreement to be in writing and to state exactly how the success fee is calculated, usually as a percentage uplift on the base charges. The written form protects the client by making the terms explicit and prevents disputes about what can be charged if the case succeeds. There’s no requirement to register a CFA with the court, and CFAs cannot be verbal; the essential elements are writing and a stated method or percentage for the success fee. That’s why the statement describing both of these points is the correct one.