What is a Fee Agreement?

• A. A document detailing the firm’s internal billing policies only
• B. A contract between the lawyer and the client that specifies the scope of the services to be rendered and the fee to be charged
• C. A notice of withdrawal from the case
• D. A receipt for payment of retainer

Answer: (B)

A Fee Agreement is a contract between the lawyer and the client that specifies the scope of the services to be rendered and the fee to be charged. It sets out what work the lawyer will perform, how the client will be billed (hourly, flat fee, contingency, etc.), payment terms, and any retainer or upfront costs. This clarity helps prevent misunderstandings about what is included in the representation and how charges will accumulate, providing both sides with a transparent roadmap for the engagement.

This differs from internal billing policies, which govern how a firm handles billing in general rather than what a specific client will receive. It’s also not merely a withdrawal notice or a payment receipt; those serve different functions altogether—one ends representation, the other evidences payment. In practice, having a written fee agreement upfront supports ethical transparency and informed consent, ensuring the client understands the services to be provided and the associated costs.