If you are a resident of Queensland, Australia and have been involved in legal proceedings, you may have come across the term “set aside costs agreement”. This is a legal term that refers to an agreement between a client and a lawyer regarding the payment of legal costs. In this article, we will explore what a set-aside cost agreement is, what it entails, and how it affects you as a client.
First and foremost, it`s important to understand that legal proceedings can be costly. For this reason, it’s important for lawyers and clients to come to an agreement regarding the payment of legal fees. A set-aside costs agreement is one of the ways in which clients can pay for legal expenses.
So, what exactly is a set-aside costs agreement? This type of agreement is made when a client does not have the financial means to pay their legal fees upfront. Essentially, the client will agree to pay their legal fees at a later date, with interest. The terms of repayment will be agreed upon between the client and their lawyer.
Understandably, clients are often hesitant to enter into a set-aside costs agreement due to the interest that is added to the amount owed. However, it`s important to note that a set-aside costs agreement can be beneficial for clients who are unable to pay for legal fees upfront. This type of agreement allows them to obtain legal representation without incurring immediate financial strain.
It should be noted that in Queensland, set-aside costs agreements are regulated by the Legal Profession Act 2007. According to this act, lawyers are required to provide clients with a written statement explaining the terms of the set-aside costs agreement. This statement should include information about the interest rate, any fees that may be added, and the total amount that the client is expected to pay.
Additionally, it’s important for clients to understand that they have the right to cancel a set-aside costs agreement within five business days of signing it. This cooling-off period gives clients the opportunity to review the agreement and make sure they fully understand the terms and conditions.
In conclusion, a set-aside costs agreement is a legal agreement made between a client and their lawyer regarding the payment of legal fees. This type of agreement can be beneficial for clients who are unable to pay their legal fees upfront. If you are considering a set-aside costs agreement, it’s important to review the terms and conditions carefully, and to make sure that you fully understand the agreement before signing it.