What does a conditional fee agreement (CFA) typically entail?

A conditional fee agreement (CFA) is primarily known for its 'no win, no fee' arrangement. This type of agreement allows a client to engage legal services without the upfront cost, meaning they pay the lawyer's fees only if the case is successful. If the client does not win the case, they typically do not have to pay the lawyer's fees, which reduces the financial risk for individuals considering legal action.

This model provides access to justice for clients who may not be able to afford traditional upfront legal fees. The conditional nature of the agreement incentivizes lawyers to work diligently on the case because their payment is contingent upon a favorable outcome. This aligns the interests of both the lawyer and the client, as both parties are motivated to achieve success in the legal proceedings.

The other options do not accurately reflect the characteristics of a CFA. For instance, paying upfront legal fees does not align with the concept of a CFA, where the focus is on deferring payment until a successful resolution. Similarly, a mandatory fee structure set by law isn't how CFAs operate, as they allow for negotiation and flexibility based on the specifics of the case and agreement between the client and lawyer. Lastly, a guaranteed payment structure regardless of the outcome directly contradicts the essence of