Contingency Fee Agreements

question 125

Multiple Choice

Contingency fee agreements

• A) are typically used for real estate purchases, the drafting of wills, and incorporations.
• B) are not subject to any restrictions.
• C) are synonymous with retainer agreements.
• D) may result in a lawyer not receiving any legal fees for the work done on a file.
• E) must be prepared for all lawyer-client relationships.

---

Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the return on the investment relative to its cost.

Margin

The difference between the selling price of a product and its cost of production.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding income from investments or taxes.

Operating Asset

Resources owned by a company that are used in its day-to-day operations to generate revenue, such as machinery, buildings, and equipment.