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LEGAL PROFESSION ACT 2007 - SECT 322
Making costs agreements
322 Making costs agreements
(1) A costs agreement may be made between— (a) a client and a law practice
retained by the client; or
(b) a client and a law practice retained on behalf
of the client by another law practice; or
(c) a law practice and another law
practice that retained that law practice on behalf of a client; or
(d) a law
practice and an associated third party payer.
(2) The costs agreement must be
written or evidenced in writing.
(3) 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) .
(4) The offer must clearly
state— (a) that it is an offer to enter into a costs agreement; and
(b)
that the offer can be accepted in writing or by other conduct; and
(c) the
type of conduct that will constitute acceptance.
(5) 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.
(6) 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.
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