A deed of assignment of conditional fee agreement refers to a legal document that enables an individual to assign their rights to receive payments from a conditional fee agreement (CFA) to another party. The CFA is an agreement between a lawyer and a client where the lawyer agrees to represent the client in a legal matter, and the client agrees to pay the lawyer only if the case is successful.
When a client assigns their rights to receive payments under a CFA to another party, it means that the client is transferring their right to receive compensation from the lawyer to the other party. The other party may be a litigation funder, a finance company, or any other third party who agrees to pay the client an amount upfront in exchange for the right to receive payments under the CFA.
This arrangement is known as a deed of assignment of conditional fee agreement. It is a legal document that sets out the terms of the transfer of the client`s rights to receive payments under the CFA to the assignee. The deed of assignment ensures that the assignee has the legal right to receive payments from the lawyer if the case is successful.
Why Use a Deed of Assignment of Conditional Fee Agreement?
There are several reasons why a client may choose to assign their rights to receive payments under a CFA to another party. One common reason is to obtain finance to cover the costs of the legal case. By assigning their rights to receive payments to a third party, the client can receive an upfront payment that can be used to cover their legal expenses.
Another reason why clients may choose to assign their rights is to reduce their risk. If the case is unsuccessful, the client will not be liable to pay their lawyer`s fees. However, if the client assigns their rights to a third party, they may be able to reduce or eliminate their risk in the case. The assignee will assume the risk of the case and will be responsible for paying the lawyer`s fees if the case is unsuccessful.
What Information is Included in a Deed of Assignment of Conditional Fee Agreement?
A deed of assignment of conditional fee agreement typically includes the following information:
– The names and addresses of the parties involved in the agreement (client, lawyer, and assignee)
– The date of the CFA and the date of the assignment
– The amount of compensation due under the CFA
– The terms of the assignment, including any conditions or restrictions
– The obligations of each party under the agreement
– The circumstances in which the agreement can be terminated
– Any warranties or representations made by the parties.
A deed of assignment of conditional fee agreement is a legal document that enables clients to assign their rights to receive payments under a CFA to a third party. This arrangement can provide clients with access to finance to cover their legal expenses and can reduce their risk in a legal case. If you are considering assigning your rights under a CFA, it is important to seek the advice of a qualified legal professional to ensure that the deed of assignment is valid and enforceable.