An agreement between a solicitor and client about the payment of legal costs is a 'costs agreement' under s 3.4.2 of the Legal Profession Act 2004 (Vic) regardless of whether it also constitutes an accord and satisfaction at common law. Such an agreement must be in writing to be enforceable. The exception permitting an accord and satisfaction to displace LPA rights (recognised in Beba v Gadens) requires that costs have been both incurred AND billed with a compliant statement of rights before the compromise is reached. A solicitor who has not rendered a compliant bill cannot circumvent the LPA's consumer protection provisions by characterising an oral fee agreement as an accord and satisfaction.
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