Making costs agreements
322 Making costs agreements
A costs agreement may be made between—
a client and a law practice retained by the client; or
a client and a law practice retained on behalf of the client by another law practice; or
a law practice and another law practice that retained that law practice on behalf of a client; or
a law practice and an associated third party payer.
The costs agreement must be written or evidenced in writing.
The costs agreement may consist of a written offer under subsection (4) that is accepted in writing or by other conduct.
Note—
Acceptance by other conduct is not permitted for conditional costs agreements—see section 323(3)(c)(i).
The offer must clearly state—
that it is an offer to enter into a costs agreement; and
that the offer can be accepted in writing or by other conduct; and
the type of conduct that will constitute acceptance.
Except as provided by section 344, a costs agreement can not provide that the legal costs to which it relates are not subject to costs assessment under division 7.
Note—
Under section 327(1), if a costs agreement attempts to provide that the legal costs are not subject to a costs assessment, the costs agreement will be void.
A reference in section 328, or in a provision of this part prescribed under a regulation, to a client is, in relation to a costs agreement that is entered into between a law practice and an associated third party payer as mentioned in subsection (1)(d) and to which a client of the law practice is not a party, a reference to the associated third party payer.
This provision refers to the regulations (a regulation
). Made under this Act:
- Legal Profession Regulation 2017
- Legal Profession (Australian Solicitors Conduct Rules) Notice 2024
- Legal Profession (Barristers Rules) Notice 2025
1 more instrument made under this Act are listed on the Act’s overview.
This Act’s bill:Explanatory memorandum
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