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Conditional Fee Agreements were introduced to improve access to justice by allowing clients to pursue legal claims without upfront costs. These agreements, governed by English and Welsh law, specify that legal fees are only payable if the case succeeds, with provisions for a success fee to compensate for the risk taken by the legal service provider. A CFA must clearly define success criteria, payment terms, and termination provisions, while complying with regulatory requirements including caps on success fees and mandatory client care information. The agreement is particularly useful in civil litigation, personal injury cases, and commercial disputes where clients may not have the means to fund litigation traditionally.

1. Parties: Identification of the solicitor/firm and the client

2. Background: Nature of the legal matter and why a CFA is being entered into

3. Definitions: Key terms including 'success', 'win', 'lose', and 'proceedings'

4. Scope of Work: Detailed description of legal services covered by the agreement

5. Success Criteria: Clear definition of what constitutes 'success' in the matter

6. Payment Terms: Base costs, success fee calculation, and payment conditions

7. Termination: Circumstances and consequences of early termination