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Contingency Fees Act, 1997 (Act No. 66 of 1997)

3. Form and content of contingency fees agreement

 

(1)
(a) A contingency fees agreement shall be in writing and in the form prescribed by the Minister of Justice, which shall be published in the Gazette, after consultation with the advocates’ and attorneys’ professions.
(b) The Minister of Justice shall cause a copy of the form referred to in paragraph (a) to be tabled in Parliament, before such form is put into operation.

 

(2) A contingency fees agreement shall be signed by the client concerned or, if the client is a juristic person, by its duly authorised representative, and the attorney representing such client and, where applicable, shall be countersigned by the advocate concerned,  who shall thereby become a party to the agreement.

 

(3) A contingency fees agreement shall state—
(a) the proceedings to which the agreement relates;
(b) that. before the agreement was entered into, the client—
(i) was advised of any other ways of financing the litigation and of their respective implications;
(ii) was informed of the normal rule that in the event of his, her or it being unsuccessful in the proceedings, he, she or it may be liable to pay the taxed party and party costs of his, her or its opponent in the proceedings;
(iii) was informed that he, she or it will also be liable to pay the success fee in the event of success; and
(iv) understood the meaning and purport of the agreement;
(c) What will be regarded by the parties to the agreement as constituting success or partial success;
(d) the circumstances in which the legal practitioner’s fees and disbursements relating to the matter are payable;
(e) the amount which will be due, and the consequences which will follow, in the event of the partial success in the proceedings, and in the event of the premature termination for any reason of the agreement;
(f) either the amounts payable or the method to be used in calculating the amounts payable;
(g) the manner in which disbursements made or incurred by the legal practitioner on behalf of the client shall be dealt with;
(h) that the client will have a period of 14 days, calculated from the date of the agreement, during which he, she or it will have the right to withdraw from the agreement by giving notice to the legal practitioner in writing: Provided that in the event of withdrawal the legal practitioner shall be entitled to fees and disbursements in respect of any necessary or essential work done to protect the interests of the client during such period, calculated on an attorney and client basis; and
(i) the manner in which any amendment or other agreements ancillary to that contingency fees agreement will be dealt with.

 

(4) A copy of any contingency fees agreement shall be delivered to the client concerned upon the date on which such agreement is signed.