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.

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Definitions:

Economic Profits

The surplus remaining after total costs are deducted from total revenue, factoring in both explicit and opportunity costs.

Normal Rate

Refers to the standard, expected rate in financial or economic contexts, often used as a benchmark.

Short Run

The period of time for which two conditions hold: The firm is operating under a fixed scale (fixed factor) of production, and firms can neither enter nor exit an industry.

Total Variable Costs

The sum of all costs that vary with the level of output or production.