A fee agreement is a contract used by attorneys and other professionals to establish the price for services rendered for their clients. An agreement may stipulate a flat fee, a fee paid hourly, or a fee contingent on certain conditions.
The document often includes an anticipated timetable for the professional's delivery of services or work to the client. A flat fee agreement will stipulate whether the total fee is paid up front or by installment payments. If the agreement is for an hourly fee, the agreement may address the rate and billing increments. Contingency fee agreements outline conditions that must be met in order for the professional to receive payment.
The agreement may contain clauses regarding how possible expenses and costs will be billed. A professional or lawyer's incurred expenses may include travel, mileage, materials, filing fees, and other charges. The document helps both parties understand each side's expectations, and reduces the chance of arguments over monetary issues once the product or service is delivered.