What is the restriction on contingency fee agreements regarding transfer of the client's interest?

• A. The agreement must not transfer the client's interest to the law practice.
• B. The agreement must transfer the client's interest to the law practice.
• C. The agreement may transfer interest only after settlement.
• D. Transfer is allowed with client consent.

Answer: (A)

The key idea is that in contingency fee arrangements the client must retain ownership of the claim and its proceeds; the lawyer cannot acquire or transfer the client's interest to the law practice. A contingency fee can be earned from the outcome, typically as a share of the recovery, but the underlying right to pursue the claim and receive the settlement remains with the client. This preserves client autonomy, avoids conflicts of interest, and prevents the firm from effectively owning the claim.

So the restriction is that the agreement must not transfer the client's interest to the law practice at any time. The client stays the owner of the claim and its proceeds, with the lawyer’s fee arising from the outcome rather than a transfer of ownership.