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Contingency Fee Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Contingency Fee Agreement

"I need a Contingency Fee Agreement under Saudi law for representing a corporate client in a commercial dispute worth approximately SAR 5 million, with a tiered fee structure where the percentage increases based on the recovery amount and stage of proceedings."

Document background
The Contingency Fee Agreement is essential for establishing clear terms between legal service providers and clients in Saudi Arabia where payment is contingent upon successful outcomes. This document is typically used in litigation, arbitration, or recovery matters where clients prefer or require success-based fee arrangements. It must carefully balance the requirements of Saudi law, including Sharia compliance, with practical commercial considerations. The agreement addresses key aspects such as fee calculations, expense allocation, and success criteria, while ensuring compliance with Saudi Legal Practice Law and related regulations. Special attention is given to avoiding prohibited uncertainty in financial arrangements while maintaining the commercial viability of the contingency structure.
Suggested Sections

1. Parties: Identification of the lawyer/law firm and the client, including full legal names and contact details

2. Background: Context of the legal matter and the basis for entering into a contingency fee arrangement

3. Definitions: Key terms used in the agreement, including 'Success', 'Recovery Amount', and 'Contingency Fee'

4. Scope of Services: Detailed description of legal services to be provided and the specific matter being handled

5. Contingency Fee Structure: Clear explanation of the fee calculation method, including percentages and any sliding scales

6. Costs and Expenses: Specification of how costs and expenses will be handled, including court fees and expert fees

7. Payment Terms: Details of when and how payment will be made upon successful resolution

8. Client's Rights and Obligations: Client's responsibilities and rights throughout the representation

9. Attorney's Rights and Obligations: Attorney's commitments and responsibilities in handling the matter

10. Termination: Conditions and procedures for terminating the agreement, including fee calculations upon early termination

11. Confidentiality: Provisions regarding confidentiality and client information protection

12. Dispute Resolution: Procedures for resolving any disputes between the parties

13. Governing Law: Specification of Saudi law as governing law and compliance with Sharia principles

Optional Sections

1. Multiple Party Provisions: Additional provisions when multiple clients are involved in the same matter

2. Referral Arrangements: Terms regarding any referral arrangements with other lawyers or firms

3. Insurance Coverage: Provisions regarding any relevant insurance coverage and its impact on fee arrangements

4. Alternative Fee Arrangements: Optional alternative fee structures if the contingency arrangement becomes unenforceable

5. International Aspects: Additional provisions for cases involving international elements

6. Expert Witness Arrangements: Specific provisions regarding the engagement and payment of expert witnesses

7. Appeals Provisions: Terms governing fee arrangements in case of appeals

Suggested Schedules

1. Schedule 1 - Fee Calculation Examples: Detailed examples showing how the contingency fee will be calculated in various scenarios

2. Schedule 2 - Costs and Expenses List: Comprehensive list of potential costs and expenses and how they will be handled

3. Schedule 3 - Client Disclosure Statement: Mandatory disclosures required by Saudi legal practice regulations

4. Schedule 4 - Power of Attorney: Form of power of attorney required for legal representation

5. Schedule 5 - Case Details: Detailed description of the legal matter and anticipated proceedings

6. Appendix A - Compliance Checklist: Checklist ensuring compliance with Saudi legal requirements and Sharia principles

7. Appendix B - Client Communication Protocol: Agreed procedures for client communications and updates

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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General Counsel

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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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