If a costs agreement is set aside, who may make orders about payment of costs?

• A. The court or tribunal may set aside the agreement and make any order it considers appropriate regarding payment of costs.
• B. The client may unilaterally rewrite the agreement.
• C. The regulator may decide on costs.
• D. The client must repay all costs regardless of the outcome.

Answer: (A)

When a costs agreement is set aside, the decision about costs falls to the court or tribunal handling the dispute. They may set aside the agreement and make any order about payment of costs that they consider appropriate, taking into account the outcome, conduct, and fairness of the case. This broad, discretionary power allows the court to determine who pays and how, rather than sticking to terms of a contract that has been invalidated. A client cannot unilaterally rewrite the agreement, and regulators do not issue individual cost orders. It isn’t correct to say the client must repay all costs regardless of the result, because the court can tailor orders based on the circumstances.