Which statement about costs agreements under Part 3.4 is accurate?

• A. It must be in writing and signed only by the client
• B. It can be oral with no disclosure
• C. It must be in writing and clearly state it is an offer to enter into a costs agreement to which Part 3.4 applies
• D. It must be approved by the court in advance

Answer: (C)

Costs agreements under Part 3.4 are about ensuring clear, informed consent and transparency before any fees are charged. The requirement is that the agreement must be in writing and must clearly state that it is an offer to enter into a costs agreement to which Part 3.4 applies. This framing makes it clear to the client that what is being offered is governed by Part 3.4, so the protections and disclosures that apply will kick in once the offer is accepted. The lawyer must sign the document as well, reflecting mutual consent. An oral arrangement without disclosure does not meet the statutory requirements, and there is no need for court approval in advance.