What is a contingent fee?

A contingent fee is a payment arrangement commonly used in legal cases where the attorney's fee is dependent upon the outcome of the case. In this scenario, the lawyer agrees to represent the client and will only receive payment if the client wins the case or obtains a favorable settlement. This type of fee structure allows clients who may not have the means to pay upfront legal fees to still pursue legal action, as they are not required to pay unless they achieve a successful result. It effectively aligns the interests of the lawyer and the client, motivating the lawyer to work diligently to win the case.

In contrast, other fee structures, such as a flat fee or standard hourly rate, require payment regardless of the outcome, which doesn't provide the same advantages for the client in situations where the financial risk of losing might deter them from seeking legal representation.