The Guidance and Ethics Committee recommends that practitioners provide clients with the Terms and Conditions of Business document along with a unique Section 150 notice when they accept instructions to act. Both documents provide clients with requisite clarity on both the costs notice of legal services and the terms on which those services are provided. 

The notice must contain all information set out by section 150 of the Legal Services Regulation Act. Any other terms, conditions or information governing your firm’s relationship with its client should be outlined in your Terms and Conditions. 

By its nature, the Terms and Conditions of Business document is a template, suitable for many situations. When using it, you are encouraged to tailor the template so that it best reflects your individual terms of service. Before using the template, you should read and adapt the document carefully. As with any such template, responsibility for the content lies with you.

What to include

Section 150 notices should detail the legal costs that are of a fixed nature that are certain to be incurred (e.g. Property Registration fees, stamp duty on documents filed in court), including VAT. 

If it is impracticable to certify legal costs, outline the basis on which costs will be charged. When setting out the basis on which costs are calculated, the following criteria should be applied: 

• The complexity and novelty of the issues involved
• The skill or specialised knowledge applied
• The amount of time and labour reasonably spent
• The urgency attached by the client to the matter
• The place and circumstances in which the matter was transacted
• The number, importance and complexity of documents
• The amounts or values of money, property or an interest in property
• Whether or not there is an agreement to limit the liability of the solicitor
• Any research or investigative work undertaken and the time spent on it
• The use and costs of expert witnesses or other expertise

The notice should also:

• state your obligation to issue a new section 150 notice to the client if you become aware of any factor that would result in a significant increase in legal costs.
• set out a “cooling off” period of up to 10 working days.

Guidance and ethics helpline

The Guidance and Ethics Committee operates a solicitor helpline for any colleague needing to talk over any matter of professional ethics. All committee members are solicitors in practice. While the helpline does not provide legal advice or offer second opinions, it is a useful colleague-to-colleague support tool, with a focus on common sense solutions.