The Conditional Fee Agreement is essential for legal service arrangements in Indonesia where payment is partially or fully contingent on success. This document is typically used in litigation, arbitration, or other dispute resolution matters where clients seek to align legal costs with outcomes. It sets out the scope of legal services, defines success criteria, establishes fee calculations, and addresses risk allocation between the advocate and client. The agreement must comply with Indonesian advocacy laws, particularly Law No. 18 of 2003 on Advocates and related regulations. It's commonly used in commercial disputes, corporate litigation, and other matters where traditional fee arrangements might limit access to legal services. The document includes specific provisions for basic fees, success fees, expense handling, and termination rights, all structured within the Indonesian legal framework.
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1. Parties: Identification of the advocate/law firm and the client, including their full legal names and addresses
2. Background: Context of the legal matter and the basis for entering into a conditional fee arrangement
3. Definitions: Key terms used in the agreement, including 'Success', 'Conditional Fee', 'Basic Fee' and 'Success Fee'
4. Scope of Services: Detailed description of the legal services to be provided and the specific matter being handled
5. Success Criteria: Clear definition of what constitutes 'success' for the purpose of triggering the conditional fee
6. Fee Structure: Detailed breakdown of the fee arrangement, including any basic fees and the conditional success fee calculation
7. Payment Terms: Timing and method of payment, including when success fees become payable
8. Expenses and Disbursements: Treatment of case-related expenses and how they will be handled
9. Obligations of the Parties: Respective responsibilities of the advocate and client
10. Termination: Circumstances under which the agreement can be terminated and the consequences
11. Governing Law and Jurisdiction: Confirmation of Indonesian law as governing law and jurisdiction for disputes
1. Risk Sharing Provisions: Additional provisions detailing how risks and costs will be shared in case of unsuccessful outcome
2. Alternative Dispute Resolution: Provisions for mediation or arbitration before resort to courts
3. Insurance Arrangements: Details of any professional indemnity insurance relevant to the engagement
4. Conflict of Interest: Specific provisions dealing with potential conflicts of interest
5. Client Money Handling: Provisions regarding the handling of client funds if required for the matter
6. Confidentiality: Additional confidentiality provisions beyond standard professional obligations
1. Schedule 1 - Fee Calculation: Detailed methodology for calculating the conditional fee and examples
2. Schedule 2 - Scope of Work: Detailed breakdown of the legal services to be provided
3. Schedule 3 - Success Criteria Details: Comprehensive description of success scenarios and corresponding fee implications
4. Schedule 4 - Expenses Schedule: List of anticipated expenses and their treatment under the agreement
5. Appendix A - Client Care Information: Standard information about client care and complaints procedures
6. Appendix B - Risk Assessment: Assessment of case risks and potential outcomes
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