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A Conditional Fee Agreement (CFA) is a legal contract between a solicitor and client where legal fees are only payable if the case is successful. Commonly known as a "No Win, No Fee" agreement, CFAs are widely used in personal injury, employment, defamation, and commercial litigation cases.
Our expert lawyers have prepared this comprehensive guide to help individuals and businesses understand CFAs, their legal implications, and how to draft a legally sound CFA.
A Conditional Fee Agreement (CFA) allows clients to pursue legal claims without paying upfront legal fees. Instead, payment to the solicitor is contingent upon winning the case. If the case is lost, the client does not pay solicitor fees (though other costs may still apply).
💡 Did You Know?
Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012), personal injury success fees are capped at 25% of damages (excluding future loss and care). However, no such cap applies to commercial disputes.
A properly drafted CFA:
🔗 Get Your Conditional Fee Agreement Template Now
The success fee is an additional fee payable to the solicitor upon winning the case.
📌 Example Clause:
"If the client wins the case, a success fee of 20% will be charged on recovered damages. If the claim is unsuccessful, no solicitor fees will be payable."
💡 Did You Know?
In defamation and privacy cases, success fees cannot be recovered from the losing party under the Conditional Fee Agreements Order 2013.
Clients may need ATE insurance to cover expenses such as court fees, expert reports, and defendant legal costs in case of loss.
📌 Example Clause:
"The client will obtain After-the-Event insurance to cover adverse costs risks."
Even if the solicitor works on a No Win, No Fee basis, the client may still be liable for expenses like:
✔️ Court fees
✔️ Expert witness fees
✔️ Medical reports
📌 Example Clause:
"The solicitor will advance disbursements on behalf of the client, recoverable upon success."
CFAs must outline when either party can terminate the agreement, such as:
📌 Example Clause:
"The solicitor may terminate the CFA if the client refuses reasonable settlement offers."
🔗 Download Your CFA Template Now
Scenario: Mark suffered a severe injury at work due to employer negligence.
Scenario: Sarah was wrongfully dismissed and wanted to claim compensation.
Scenario: A journalist published false claims against a celebrity.
✔️ Success Fee Structure (percentage & maximum cap)
✔️ Risk Assessment & ATE Insurance
✔️ Disbursements & Payment Responsibilities
✔️ Termination & Withdrawal Terms
✔️ Compliance with CFA Regulations
🔗 Damages-Based Agreement (DBA) Template – Alternative to CFAs where fees are a fixed percentage of recovered damages.
🔗 Litigation Funding Agreement – Covers cases where third-party funders cover litigation costs.
🔗 Settlement Agreement Template – Used to resolve disputes before trial, saving legal costs.
✔️ AI-Powered Document Creation – Draft legal agreements in minutes.
✔️ 5,000+ Lawyer-Drafted Templates – Covering business, litigation, and employment law.
✔️ Legal Pathway™ & Scenario Analysis – Assess contract risks before signing.
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Our expert lawyers answer your frequently asked questions about Conditional Fee Agreements (CFAs), helping individuals and businesses understand how No Win, No Fee arrangements work, the legal implications, and how to draft a compliant agreement.
A Conditional Fee Agreement (CFA) allows clients to pursue legal action without upfront costs, making it a popular choice for personal injury claims, employment disputes, commercial litigation, and more. However, understanding the risks and benefits is crucial before entering into such an agreement.
A Conditional Fee Agreement (CFA) is a legal contract between a solicitor and a client that allows legal fees to be paid only if the case is successful. This arrangement is commonly known as a No Win, No Fee agreement and is widely used in:
The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012) capped success fees at 25% for personal injury claims, but no such cap applies to commercial disputes.
Under a CFA, the solicitor agrees to take on the case at their own financial risk. If the case is won, the client pays:
✔️ Base legal fees (the standard solicitor’s fees).
✔️ A success fee (an additional amount based on a percentage of fees).
✔️ Disbursements (e.g., expert reports, court fees, barrister fees).
If the case is lost, the client:
❌ Does not have to pay the solicitor’s fees.
❌ May still be liable for disbursements (unless covered by insurance).
📌 Example:
Sarah, a freelancer, suffers an accident at work due to employer negligence. She enters a CFA with her solicitor, agreeing to a 25% success fee. If she wins £20,000 in compensation, her solicitor receives £5,000 as a success fee, leaving her with £15,000 after deductions.
Yes, CFAs are legally binding under the Courts and Legal Services Act 1990, provided that they:
⚠️ Failure to meet these requirements may render the CFA unenforceable, preventing the solicitor from recovering fees.
A success fee is a percentage-based uplift charged on the solicitor’s fees if the case is won.
📌 Example:
If a solicitor’s base fee is £10,000 and the success fee is 50%, the client pays £15,000 in total if the case is successful.
Not necessarily. Clients may still need to pay:
📌 Example:
John, a small business owner, files a breach of contract claim under a CFA. If he loses, he may still owe £7,000 in expert reports and court fees unless covered by ATE insurance.
If you lose, you:
🔗 Download Your CFA Template Now
Yes, clients can negotiate success fees, cost caps, and expenses. Some solicitors offer reduced success fees for early settlements.
| Feature | CFA | DBA |
|---|---|---|
| Payment basis | % of solicitor's fees | % of client’s damages |
| Success fee cap | 25% for personal injury | 50% of damages |
| Loser pays costs? | Usually yes | Yes |
Yes, but employment claims rarely succeed under a CFA because:
✔️ Tribunal compensation is often low.
✔️ Defendants rarely pay costs even if they lose.
Yes, a CFA can be terminated if:
If terminated, the client may owe costs for work done.
Yes, CFAs can be used in group claims, but success fees may be split across multiple claimants.
✔️ AI-Powered Document Creation – Draft legal agreements in minutes.
✔️ 5,000+ Lawyer-Drafted Templates – Covering business, litigation, and employment law.
✔️ Legal Pathway™ & Scenario Analysis – Assess contract risks before signing.
✔️ Traffic Light Analysis – Identify loopholes & compliance issues.
✔️ Collaborative Online Platform – Draft, edit & sign documents seamlessly.
A Conditional Fee Agreement (CFA), commonly known as a No Win, No Fee agreement, is a legal contract between a solicitor and a client where fees are only payable if the case is successful. This agreement makes legal services more accessible, particularly for personal injury claims, employment disputes, and commercial litigation.
Our expert lawyers provide this DIY guide to help individuals and businesses understand how Conditional Fee Agreements work, key legal considerations, and how to draft a compliant agreement.
🔗 Get Your Conditional Fee Agreement Template Now
A Conditional Fee Agreement (CFA) is a risk-sharing contract where the solicitor agrees to take on a case without upfront payment. Instead, the solicitor is compensated through:
✔️ Base legal fees – Only payable if the case is successful.
✔️ Success fee – An additional percentage of the standard fees if the claim succeeds.
✔️ Disbursements – Court fees, expert reports, and barrister fees (may be recoverable from the losing party).
If the case is lost, the client does not pay solicitor fees but may still owe court fees and expert costs unless covered by insurance.
Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO 2012), success fees in personal injury cases are capped at 25% of damages. However, no cap applies to commercial litigation or employment disputes.
A well-drafted CFA provides financial protection and increases access to legal services, especially for individuals and businesses with limited resources.
Key Benefits:
✔️ No Upfront Costs – Clients do not need to pay legal fees at the outset.
✔️ Risk Reduction – The solicitor assumes financial risk if the case is lost.
✔️ Stronger Legal Representation – Solicitors have an incentive to maximise compensation.
✔️ Access to Justice – Enables individuals and businesses to pursue claims without financial barriers.
Potential Risks:
❌ Success Fee Deductions – A portion of compensation is paid to the solicitor.
❌ Liability for Disbursements – Clients may still owe court fees and expert reports.
The CFA must clearly state the solicitor’s firm and the client’s full details.
📌 Example Clause:
"This agreement is made between Johnson Legal LLP (Solicitor) and Emily Carter (Client) regarding the claim for personal injury damages."
Define the specific legal matter covered under the CFA.
📌 Example Clause:
"This agreement applies solely to the personal injury claim following the road traffic accident on 10th June 2024."
The agreement should specify:
✔️ The percentage of the success fee.
✔️ The maximum allowable deduction from damages.
✔️ When payment is due (typically upon settlement or court award).
📌 Example Clause:
"The client agrees to pay a success fee of 25% of recovered damages, capped at £10,000."
Clarify who is responsible for expenses such as:
Clients should consider After-the-Event (ATE) insurance to cover adverse costs.
📌 Example Clause:
"The client is responsible for disbursements unless covered by an ATE insurance policy."
The CFA should outline how either party can terminate the agreement, including costs for work completed.
📌 Example Clause:
"Either party may terminate this agreement in writing. If the client terminates after an offer is made, solicitor fees will still be due."
🔗 Download Your Conditional Fee Agreement Template
Scenario: David suffers a workplace accident and pursues a CFA-based personal injury claim.
Scenario: A business sues a supplier for a contract breach.
Scenario: Laura is unfairly dismissed and pursues an employment claim under a CFA.
✔️ Clearly identify the client and solicitor.
✔️ Define the legal matter covered.
✔️ Set the success fee percentage and maximum deduction.
✔️ Specify who pays for disbursements.
✔️ Include termination rights for both parties.
🔗 Damages-Based Agreement (DBA) – Alternative risk-sharing fee arrangement based on damages.
🔗 Employment Tribunal Representation Agreement – Covers legal representation for employment disputes.
🔗 Personal Injury Claim Letter Template – Start your injury claim with a formal notification letter.
✔️ AI-Powered Document Creation – Draft legal agreements in minutes.
✔️ 5,000+ Lawyer-Drafted Templates – Covering business, litigation, and employment law.
✔️ Legal Pathway™ & Scenario Analysis – Assess contract risks before signing.
✔️ Traffic Light Analysis – Identify loopholes & compliance issues.
✔️ Collaborative Online Platform – Draft, edit & sign documents seamlessly.
📑 Select Template
✨ Edit & Review
✅ Collaborate & Sign
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Thanks to their expertise, the contract breach issue was resolved efficiently and favourably.
I wholeheartedly recommend Karim to anyone in need of legal assistance. Their professionalism, expertise, and genuine care for their clients truly set them apart. If you’re facing a contract breach or any other legal challenge, look no further.
Karim and his team are a god send. We have been dealing with a breach of contract construction dispute for several months which has caused us stress and anxiety. Karim was able to resolve it for us in a few weeks. Honestly the best lawyers I have come across. Diligent and well thought out advice.
Karim Oualnan at handled a contractual case to a successful resolution. Karim was diligent, always providing great, honest advice in which Karim always put my best interests at the forefront of his suggestions during the case. He is very reliable, trustworthy and always on hand to help. I would highly recommend Karim and look forward to working with him again in future.
Karim is a standout lawyer! His approach is very strategic and always has the best intentions of the client in mind throughout. I would highly recommend him if you’re looking for a lawyer. You’re in safe hands!
Karim is an incredibly meticulous and astute lawyer who applies a high level of skill and intelligence to his work. There is no one else that I can think of who I would go to solve a commercial dispute due to his ability of solve problems and see the commercial angle and importance of legal issues. As is evidenced by his career so far he is very comfortable with leading on complex matters and you can trust that he will produce an excellent quality of work. He is also incredibly personable, diligent and hard-working.
Karim was amazing, quick and effective just what you need. Very professional and makes it easy for you to understand everything. Always there when we need help and times of need. Worth every single penny!
I received follow up legal advice from Karim that was extremely helpful and really helped me to clarify my situation and decide on my case progression
Absolutely super service.
Very reactive and called within minutes. Offered us lots of great advice which he didn’t need to offer up for free. Would recommend
I have known Karim for several years and have nothing but praise for the way he conducts himself professionally. He is an outstanding Litigation Solicitor dedicated to achieving the best solutions for his clients. He is highly recommended
I recently worked with Karim at GoLegal and couldn’t be more pleased with the service I received. He provided exceptional advice regarding trademarks and offered valuable business insights. His expertise and thoroughness were evident in every interaction. I highly recommend Karim and GoLegal for anyone seeking professional and insightful legal guidance.
Thank you so much Karim for your Legal advice
Professional, friendly and helpful
I cannot be more grateful
Highly recommended
It was astounding how much legal knowledge and experience Karim and the team possessed. They gave good legal advice and handled complicated legal matters with ease. Their handling of delicate situations with professionalism was admirable.
Go-legal Ai has very professional and well mannered people who work hard to make sure your enquiries are dealt with as soon as possible.
Having spoken to multiple solicitors in the past few weeks I was at wit’s end, I was just as low as could be until I found Karim who gave me the confidence to keep going, his knowledge of my predicament was second to none.
Karim gave me valuable advice and was very helpful
when i was unsure weather to pursue a claim for a Construction contractual dispute.
Amazing service and experienced staff. Help and advice was top quality and especially recommend Karim as giving a level of quality service above expectations. Thank you
Amazing service! He’s thorough and ensures no detail is overlooked. With his extensive expertise, he provided me with confidence and reassurance during our legal proceedings. Karim was efficient from beginning to end, and his friendly demeanor made it an unparalleled experience!
Karim was able to offer us some great advice in consultation. Very knowledgeable and considerate. Thank you Karim.
I highly recommend Karim as a commercial solicitor. While he worked on my matter, I was extremely impressed with his expertise, professionalism, and client-focused approach. He is a trusted advisor who will provide you with the expert legal advice you need to make informed decisions.
I recently sought legal representation for a challenging litigation case and go-legal exceeded my expectations in every way. From the initial consultation, it was clear they were experienced and truly invested in getting the best outcome for me.
Karim, was particularly exceptional. His profound knowledge of the law and insightful strategies were invaluable throughout the process. He kept me informed, addressed all my concerns with patience and clarity, and consistently demonstrated genuineness.
Another massive thank you
Karim and his team have been excellent in helping our company navigate the regulatory environment in the online competitions and gaming sector. His legal expertise has been invaluable in recent months, and we’re extremely grateful for his knowledge and support.
I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.
From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.
I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.
Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.
I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.
From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.
I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.
Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.
Karim was easy to work with. Slight communication hiccup at the start, but more than made up for it with the work he did on my case. Happy with the outcome.
Karim has been so so great, he helped me throughout the whole process and even after. 100% recommended
Karim has been absolutely amazing, really helpful and responses were always really fast. I would 100% go back!
I am extremely pleased with the legal services provided by Karim and his team. Their expertise, professionalism, and prompt communication made a significant difference in my case. I also appreciated your display of empathy and understanding during a potentially stressful period for me. Your compassionate approach was truly valuable – a massive bonus for me personally. Highly recommended!
Karim provided exceptional service, demonstrating a high level of professionalism and competence. He was thorough, responsive, and always ensured that my needs were met promptly and efficiently. His expertise and attention to detail were evident in every interaction, making the entire process smooth and stress-free. I highly recommend Karim for his outstanding service and dedication to excellence.
Karim is an immaculate professional, going above and beyond to excel in his service. Couldn’t recommend highly enough!
Karim was exceptional at providing me advice to my matters. He was attentive, knowledgeable and approachable. Moreover, GoLegal is a great platform for open-sourced legal information.
The owner of Go Legal helped me with the process of filing a pre-action protocol proforma and it went smoothly. I totally recommend their professionalism and also dedication.
Karim is an amazing asset to have in your corner. Can’t recommend him and his team enough
Karim was extremely helpful and knowledgeable.
Gave me sound advice on what I needed to do.
Very helpful and informative. Takes the time to address the details
Very helpful and friendly impartial advice. Extremely thankful for the patience and time.
Karim had exceptional dedication, a positive attitude and provided very helpful guidance. He constantly went above and beyond in every aspect.
Great advice from the start, completely understanding & happy to discuss anything that your unsure about concerning
Fantastic Service given and alot of help regarding ex business partner/supplier giving harassment and defamation. A cease and desist letter was recommended to resolve the issues. Definitely recommended.
Exceptional service throughout the whole process. The information and advice provided was first class and exceeded my expectations.
I am delighted to share my heartfelt gratitude and utmost appreciation for Zareen, the immigration consultant who expertly guided us through the British naturalisation process for my wife and two kids. From start to finish, Zareen’s exceptional service and unwavering confidence made an enormous difference in our journey.
Zareen’s expertise and professionalism were evident from our very first meeting. She thoroughly understood the complexities of our case and approached each challenge with a calm and positive demeanor. Her extensive knowledge of the naturalisation process and her ability to anticipate and address potential issues reassured us every step of the way.
What truly set Zareen apart was her constant communication and feedback. She kept us informed about the progress of our application, providing timely updates and constructive insights that helped us stay on track. Her positive attitude and encouraging words were a source of comfort, especially during moments of uncertainty.
Zareen’s dedication and meticulous attention to detail ensured that all our documentation was accurate and complete. Her proactive approach in preparing and submitting our application demonstrated her commitment to achieving the best possible outcome for our family.
Thanks to Zareen’s exceptional guidance, we successfully obtained British naturalisation for my wife and two kids. Her professionalism, confidence, and unwavering support made an otherwise daunting process smooth and stress-free. I wholeheartedly recommend Zareen to anyone seeking an immigration consultant who genuinely cares about her clients and delivers outstanding results.
Thank you, Zareen, for your outstanding service and for helping our family achieve this significant milestone. We are forever grateful for your expertise and support.
Karim is knowledgeable and very attentive in all details ensuring the process goes smoothly and transparent, Also very professional and reliable, throughout the process making it easier and more prompt, I definitely recommend it 🌟🌟🌟🌟🌟🌟
Excellent to have warm personable assistance
Would highly recommend for drafting any contractual documents. Stand out firm
Called in for information regarding my dissertation on civil law and was kindly provided with very useful information.
Since I was in need of a lawyer, Karim was my go to. He was really listening to me and I felt heard. Thanks for your help
karim gave me a call back and gave me advice on what I should do. Thank you
Very helpful! Thanks Karim
He listened and provided very good advise
Great platform. Thank you Go Legal Ai
Very caring and professional company…
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