What must a fee agreement always include according to best practices?

A fee agreement should always include details on how the fee is calculated because this transparency is essential in establishing the basis of the attorney-client relationship and helping clients understand what they are paying for. Clarity in how fees will be determined—whether through hourly rates, flat fees, contingency fees, or other billing methods—enables clients to make informed decisions about their legal representation.

Providing this level of detail also helps prevent misunderstandings and potential disputes about billing practices in the future. It aligns with the ethical obligations of attorneys to communicate clearly and adequately with their clients regarding financial arrangements. While specific dollar amounts may be relevant, variations in cases often make it impractical to list every service with a set price. Confidential client information, while important in attorney-client communications, does not belong in a fee agreement and could lead to privacy concerns. Time limits for payment may also be a consideration but are not as fundamental to the understanding of how fees will be structured and calculated. Thus, specifying how the fee is calculated is a cornerstone of best practices in fee agreements.