Attorney Retainer Agreement

1. The attorney-client retainer agreement (hereinafter: Retainer) is established between the Client and the Law Firm, as the Parties, in accordance with the provisions of Chapter V of Act LXXVIII of 2017 on the Practice of Law (Ütv.), based on an agreement covering at least the subject matter of the retainer, the fee, and the foreseeable costs.
2. The Attorney-in-Fact shall handle the Case(s) entrusted to him or her, the content and scope of which are defined by the Act on Legal Services, the Retainer Agreement, the Legal Situation Assessment, and these Terms and Conditions of Attorney-in-Fact Services, their annexes, and any other agreement between the Parties.

Contract for Services

3. The Service Agreement sets forth the terms of the service agreement entered into between the Parties, including, among other things, its purpose, performance, scope, fee, and anticipated costs.

Assessment of the Legal Situation

4. The Legal Situation Assessment includes the Client’s statements of fact regarding the Case, the Client’s objective, and the Attorney’s legal advice regarding the Client’s rights, the enforceability of those rights, the Client’s legal options and risks, as well as the legal steps chosen by the Client in light of the foregoing.

Terms and Conditions of Engagement for Attorneys

5. These Terms and Conditions of Engagement set forth the general terms and conditions governing the legal engagements accepted by the Law Firm.
6. Upon the Client’s acceptance of these Terms and Conditions of Attorney-Client Engagement, they shall become part of the Engagement Agreement. In the event of any discrepancy or conflict between the Retainer Agreement and these Terms and Conditions of Engagement, the provisions of the Retainer Agreement shall take precedence.
7. The subject matter, purpose, performance, and scope of each Matter, as well as any fees, expenses incurred, and their due dates that differ from those specified in these Terms and Conditions of Attorney-Client Retention, shall be set forth in the Retainer Agreement or the Legal Assessment, or any other agreement between the Parties.

Commission Fees and Expenses

8. The Law Firm’s current published fees can be found at drjuhaszpeter.hu/dijak (Fee Schedule). By signing these Terms and Conditions of Engagement, the Client accepts the Fee Schedule. The Parties may specify the retainer fee in the Retainer Agreement even if it differs from the Fee Schedule.
9. Unless otherwise agreed by the Parties, the fees listed in the Fee Schedule, the Service Agreement, or in communications between the Parties are net amounts subject to value-added tax.
10. The Law Firm is entitled to unilaterally amend the Fee Schedule. Any such amendment shall take effect with respect to individual Clients upon notification in accordance with these Terms and Conditions of Engagement. Fees may be amended only with effect for the future; that is, changes to the Fee Schedule do not affect the fees for previously agreed-upon Cases.
11. After each month, the Agent shall inform the Principal of the commission fee for the services rendered during that month, as set forth in the “Certificate of Performance” section.
12. The retainer fee may be a flat fee, a fixed fee, an hourly rate, or a success fee, or a combination thereof. A flat fee is the retainer fee applicable to all Cases, or a specific set of Cases, for a given period. A fixed fee, hourly rate, or success fee is the fee for a single case or one or more stages thereof, specific legal proceedings, or procedural stages.

Flat-Rate Service

13. The Flat-Rate Service is fulfilled through the legal, attorney, and administrative work performed by the Agent during the given period. The flat fee is determined on a monthly basis and is due on the 5th day following the month in question.

Flat-Rate Service

14. The provision of the flat-rate service and the due date for the flat-rate fee are tied to the legal event specified in the Service Agreement, any other agreement between the Parties, or, in the absence thereof, the Fee Schedule.

Hourly-Rated Service

15. The hourly rate is calculated based on the attorney’s hour. The attorney’s hour is calculated on a per-minute basis. The Agent’s staff members complete one attorney-hour—depending on their professional experience, as determined by the Law Firm—in a period of one hour or longer. The hourly fee is earned for each subtask completed during the course of the engagement.

Performance-Based Service

16. In the case of a success-based fee arrangement, the Parties agree on a separate base fee, as well as the basis and percentage rate of the success fee. Unless otherwise agreed by the Parties, the basis for the success fee is the difference between the financial benefit achieved for the Client through the Engagement and any financial loss claimed against the Client and actually incurred by the Client at the end of the Engagement.

Advance Payment

17. Prior to commencing the Case, the Law Firm is entitled to an advance on fees, which amounts to 50% of the retainer fee.

Discount

18. The Law Firm may also grant the Client a special discount as specified in the Engagement Agreement. The Client’s entitlement to the discount shall cease if the Client is more than 15 days late in paying the discounted fee.

Assignment Costs

19. The Law Firm provides information regarding the costs incurred in individual cases and legal proceedings on the website www.drjuhaszpeter.hu/dijak (Fee Schedule). By signing these Terms and Conditions of Engagement, the Client acknowledges that they have been informed of the costs set forth in the Fee Schedule. The Law Firm shall separately inform the Client of any costs not listed in the Schedule of Fees or that differ from it.
20. The fees provided by the Law Firm are for informational purposes only; the items and amounts of the fees may change at any time for reasons beyond the Attorney’s control (changes in legislation, fee increases, etc.). The calculation of the amount of each cost depends primarily on the information provided by the Client.

Proof of Completion (Timesheet)

21. In the case of hourly-billed services, or if the Parties expressly agree to do so, the Contractor shall send the Client a written summary (timesheet) after each calendar month, detailing the tasks performed and the time spent during that month. The Client is required to review the performance confirmation within 3 business days of receipt and either confirm or object to the performance. Items in the performance certificate that have not been confirmed or objected to within the deadline shall be deemed to have been completed.

Payment Terms

22. The Principal agrees that the Agent may issue an electronic invoice.
23. The Principal is required to pay the Agent’s invoice or respond to the Agent’s request for an advance payment within 5 days.
24. The Principal shall bear the costs incurred in the performance of the assignment and is obligated to pay them upon the Agent’s request by the specified date (or, in the absence thereof, within 3 business days). The Agent is not obligated to advance such costs.The Principal shall be liable for any procedural delays, failure to perform legal acts, or legal consequences resulting from late payment of such costs.

Breach of Contract

25. In the event of late payment of the commission fee or expenses, the Client shall be obligated to pay default interest in accordance with Section 6:155 of the Civil Code and a flat-rate collection fee per invoice, effective from the first day of the delay.
26. The Principal is obligated to reimburse the agency fee set forth in the Fee Schedule for the debt management/collection measures taken by the Agent due to the Principal’s late payment, as well as any related expenses incurred, in addition to the flat-rate collection fee.
27. In the event of a payment delay by the Client exceeding 15 days, the Agent shall be entitled to invoice the applicable discount and/or suspend further performance of the engagement in writing until the Client has settled any outstanding, past-due debt. The Client shall, as necessary, notify third parties, authorities, and courts of the suspension of the contract due to late payment in any ongoing matters or proceedings.
28. The Agent is entitled to set off against any overdue claim it has against the Principal any amounts received on behalf of the Principal, except for the attorney’s escrow account.

Responsibility

29. Liability insurance for legal practice provides financial coverage for any claims by the Client arising from the Agent’s activities and falling within the scope of the Agent’s liability (e.g., damages, indemnification). The Agent’s obligation to pay damages or indemnify the Principal is limited to the amount of coverage provided by the aforementioned liability insurance. The Parties unanimously declare that the retainer fee was determined with this limitation of liability in mind.

Termination of the Engagement

30. The Client is entitled to terminate this agreement in writing at any time, with immediate effect and without providing a reason.
31. The Attorney is entitled to terminate this retainer agreement in writing at any time, without providing a reason, subject to a 15-day notice period. The Attorney shall continue to act in the Client’s best interests even during the notice period, unless otherwise expressly provided for in these Terms and Conditions of Attorney-Client Engagement, by agreement between the Parties, or by the Client.
32. In the event that the engagement is terminated for any reason, the Agent shall be entitled to a fee proportional to the work performed: a) For hourly-rate services, based on the time worked; b) For fixed-fee services, in proportion to the work performed relative to the total scope of the service; c) For success-based services, the full base fee, as well as the success fee (assuming the engagement is successful), in proportion to the work performed relative to the total scope of the service.
33. In the event of termination of an engagement based on the drafting of legal documents (e.g., sale and purchase, corporate proceedings), the Agent is entitled to a pro-rata engagement fee for the work performed: 20% upon acceptance of the offer, 60% upon preparation of the first draft contract, 75% upon finalization of the draft contract, and 90% upon execution and countersigning of the contract.

Specific Features of a Lawyer's Retainer Agreement

34. The Agent shall perform the assignment in accordance with the Principal’s instructions, in the Principal’s best interests, to the best of the Agent’s ability, and within the framework of professional standards and applicable laws. The Principal is obligated to provide the Agent with all instructions and information necessary for the assessment and handling of the matter, and to facilitate the performance of the assignment during its course—with particular regard to the compilation of the necessary documentation— and to cooperate to the extent necessary. In exceptional cases, the Agent has the right to deviate from the scope of the mandate during the course of the proceedings if it was not possible to consult with the Principal in advance and the deviation is in the Principal’s best interest. The Agent must inform the Principal of this without delay.
35. The Principal acknowledges that the effectiveness of the Agent’s actions may be fundamentally influenced by factors unrelated to the Agent’s professional conduct; therefore, the Agent does not guarantee the outcome.
36. The Attorney-in-Fact is authorized—within the scope and subject matter of this Power of Attorney—to act on behalf of and in the name of the Principal in accordance with Act LXXVIII of 2017 on the Practice of Law. The Attorney-in-Fact is also authorized to make statements, sign documents, and receive documents on behalf of the Principal. The Principal acknowledges that statements made on his or her behalf are binding upon him or her.
37. The Agent may be replaced by a member of the law firm, an attorney, or a trainee attorney employed by the firm, as well as by an attorney registered with the Bar Association, without the need for a separate power of attorney.
38. Upon completion or termination of the engagement, the Attorney is obligated to return the documents at the Client’s request. The attorney is not obligated to surrender his or her drafts, documents containing the client’s instructions, letters addressed to him or her in connection with the matter, receipts for payments made on behalf of the client, or other documents necessary for assessing the propriety of his or her conduct; At the client’s request, the attorney is required to provide copies of such documents—with the exception of drafts.
39. The Client acknowledges that, pursuant to the provisions of Act LIII of 2017 on the Prevention and Combating of Money Laundering and the Financing of Terrorism, the attorney is subject to customer due diligence and reporting obligations if the attorney holds money or valuables in trust, or if, in connection with the preparation and execution of the following legal transactions, they perform the legal services defined in Section 2(1) of Act LXXVIII of 2017 on the Practice of Law: a) the purchase or sale of an ownership interest (share) in a business entity or other economic organization; b) the purchase or sale of real estate; c) the establishment, operation, or dissolution of a business entity or other economic organization.

Attorney-Client Privilege

40. A lawyer is bound by a duty of confidentiality with respect to all facts and information that come to his or her knowledge in the course of performing his or her professional duties. This obligation is independent of the existence of the attorney-client relationship and remains in effect even after the attorney ceases to practice. The scope of attorney-client privilege includes the establishment of the retainer and the identity of the client.
41. The Client agrees that the Attorney may engage third parties as collaborators for the purpose of fulfilling the Retainer and may share attorney-client privilege with them. The obligation of attorney-client confidentiality also applies to such collaborators.
42. In the event that the Client fails to fulfill its obligations under this Agreement, the Client, by signing this Agreement, hereby releases the Attorney from the obligation of attorney-client confidentiality, solely for the purpose of enforcing the Attorney’s rights and claims arising from this Agreement.

Delivery

43. All notices relating to this Agreement, its performance, and its termination must be delivered in person, by courier, by mail (as a prepaid registered letter), by fax, or by email to the addresses listed in the official registry or provided by the other Party for the purpose of service. In the event of successful delivery or refusal of acceptance, the notice shall be deemed delivered on the date of such event; in the event of unsuccessful delivery by any other means, the notice shall be deemed delivered on the fifth day following the date of dispatch. Notices subject to a deadline must be delivered by the expiration of the deadline. If the sender handles the recipient’s correspondence as an authorized representative, the item shall be deemed delivered even if it is sent to the managers, members, or authorized representatives of the business entity.

Laws and Regulations

44. For matters not addressed in these Terms and Conditions of Engagement, the provisions of the Civil Code and the Act on the Practice of Law shall apply. 
45. Data and documents provided to our law firm are subject to attorney-client privilege (Act LXXVIII of 2017 on Attorneys) and are considered attorney records (Regulations of the Legal Affairs Committee No. 16/2018. (XI.26.) MÜK).