How may a costs agreement be provided?

• A. It must be signed and can be a lump sum or itemised; it may be provided electronically with the client's consent.
• B. It may be oral and does not need to be signed.
• C. It must be signed but cannot be provided electronically.
• D. It may be signed but must be delivered only as a hard copy.

Answer: (A)

The fundamental point is that a costs agreement must be in writing and signed by the client, and it can be delivered electronically if the client consents. It can be structured as a lump sum or itemised, depending on how the fees will be charged. Providing it in writing protects the client by making the fee arrangement clear and verifiable, and allowing electronic delivery with consent reflects modern practice and practical convenience.

Oral agreements aren’t acceptable because they lack the written record that explains the basis of fees. A signed requirement isn’t limited to hard copy only; electronic delivery is permitted as long as the client agrees to receive it electronically.