What type of fees is contingent on the outcome of a case?

Study for the Law Society of Ontario Licensing Practice Exam. Prepare with quizzes and detailed explanations. Get ready for your exam!

Contingency fees are a specific type of fee arrangement where the lawyer's payment is dependent on the outcome of the case. This means that the lawyer will only collect a fee if the client wins the case or achieves a favorable settlement. The fee is typically a percentage of the amount recovered on behalf of the client. This structure is commonly used in personal injury and other civil cases, allowing clients to pursue legal action without upfront costs, which can be especially beneficial for those who might not have the funds to pay hourly or retainer fees.

In contrast, hourly fees are charged based on the time spent working on a case, retainer fees are upfront payments to secure a lawyer's services, and flat fees are fixed amounts for specific legal services regardless of the outcome. Each of these fee structures operates independently of the case's result, unlike contingency fees, which are specifically tied to the success of the legal claims pursued.

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