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Legal fees clause: Copy, customize, and use instantly

Introduction

A legal fees clause specifies who will bear the responsibility for the payment of legal costs in the event of a dispute, enforcement, or litigation arising from the Agreement. This clause ensures that both parties understand their financial obligations related to legal expenses and sets expectations for the handling of any legal claims that may arise.

Below are templates for legal fees clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

This variation applies broadly to the responsibility for legal fees.

In the event of any dispute arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover its reasonable legal fees, costs, and expenses from the non-prevailing party. This includes all costs related to litigation, arbitration, or settlement negotiations.

This variation applies to indemnification for legal expenses.

The [Party] agrees to indemnify and hold the other party harmless from any legal fees, costs, and expenses incurred as a result of a claim, dispute, or litigation that arises out of the [Party]'s breach of this Agreement. The indemnification applies to all reasonable and necessary legal fees, including but not limited to attorneys' fees, court costs, and settlement fees.

This variation applies to a scenario where both parties share responsibility for their own legal fees.

Each party shall bear its own legal fees, costs, and expenses incurred in the enforcement or defense of this Agreement, regardless of the outcome. This includes any legal costs related to settlement, arbitration, or litigation.

This variation applies when one party is responsible for legal fees in specific cases.

In the event of a dispute arising from [specific type of breach, e.g., non-payment, violation of intellectual property rights], the prevailing party shall be entitled to recover its reasonable legal fees, including attorneys' fees, from the other party, regardless of the outcome of the case. This provision does not apply to claims arising from negligence or acts outside the scope of this Agreement.

This variation applies to legal fees in relation to third-party claims.

The [Party] shall be responsible for any legal fees, costs, and expenses incurred as a result of any third-party claims, lawsuits, or legal actions that arise from their actions or failure to perform under this Agreement. In the event of a third-party claim, the responsible party shall promptly notify the other party and bear the legal costs associated with such claims.

This variation applies to legal fees in the context of arbitration.

If any dispute arises under this Agreement and is subject to arbitration, the prevailing party shall be entitled to recover its reasonable legal fees, including arbitration costs, from the non-prevailing party. The arbitration fees and expenses, including those of the arbitrator, shall be borne equally by the parties unless the arbitrator determines otherwise.

This variation applies when there is a limit to the legal fees recoverable.

In the event of any dispute arising from this Agreement, the prevailing party may recover its legal fees, costs, and expenses, provided that such fees do not exceed [specific dollar amount, e.g., $50,000]. This limitation applies to all reasonable and necessary legal costs, including attorneys' fees, court costs, and settlement-related expenses.

This variation applies to legal fees in the case of specific breaches.

In the event of a material breach of this Agreement by one party, the breaching party shall be liable for all legal fees, costs, and expenses incurred by the non-breaching party in enforcing its rights or seeking remedies for the breach. This includes any costs associated with legal proceedings, arbitration, and settlement negotiations.

This variation applies when the dispute resolution process involves mediation and arbitration.

If a dispute arises under this Agreement, the parties agree to first attempt to resolve the issue through mediation. If mediation fails, the parties will proceed to arbitration. The prevailing party in either process shall be entitled to recover its reasonable legal fees, including mediation and arbitration costs, from the non-prevailing party.

This variation applies to the enforcement of the Agreement.

In the event that either party is required to take legal action to enforce this Agreement or collect damages due to a breach, the prevailing party shall be entitled to recover its legal fees, including court costs, attorney’s fees, and any expenses incurred in the enforcement or collection process.

This variation applies to legal fees arising from a breach of confidentiality.

In the event of a breach of the confidentiality provisions under this Agreement, the breaching party shall be responsible for all legal fees, costs, and expenses incurred by the non-breaching party in enforcing the confidentiality obligations. This includes attorneys' fees, court costs, and any other expenses related to the legal action or settlement.

This variation applies to legal fees related to intellectual property rights enforcement.

If any dispute arises relating to the protection or enforcement of intellectual property rights under this Agreement, the prevailing party shall be entitled to recover its reasonable legal fees, including those incurred in enforcing patent, trademark, or copyright rights, from the non-prevailing party.

This variation includes a provision for reasonable efforts before legal action.

Prior to initiating any legal action under this Agreement, the parties agree to make reasonable efforts to resolve any dispute amicably. If legal action is necessary, the prevailing party shall be entitled to recover all reasonable legal fees, including attorneys' fees and court costs, from the non-prevailing party.

This variation applies to legal fees related to government investigations.

If either party is required to incur legal fees in response to a government investigation, inquiry, or regulatory action that arises due to the actions of the other party under this Agreement, the responsible party shall bear all associated legal costs. The party incurring such costs shall notify the other party and provide reasonable cooperation.

This variation applies when one party is responsible for indemnifying the other for third-party legal fees.

The [Indemnifying Party] agrees to indemnify the [Indemnified Party] for all reasonable legal fees, including attorneys' fees, incurred as a result of any third-party claims, lawsuits, or legal proceedings arising out of or in connection with the indemnifying party's breach of this Agreement.

This variation applies to legal fees in disputes involving multiple parties.

In the event of a dispute involving multiple parties under this Agreement, the prevailing party shall be entitled to recover its legal fees, costs, and expenses from the non-prevailing parties. If multiple parties prevail, legal fees will be allocated among the parties based on their respective degrees of success in the dispute.

This variation applies to legal fees during settlement negotiations.

The prevailing party in any settlement negotiation arising out of this Agreement shall be entitled to recover all reasonable legal fees, costs, and expenses incurred during the negotiation process, including the cost of settlement agreements and related legal assistance.

This variation applies to alternative dispute resolution processes such as mediation or arbitration.

In the event of a dispute under this Agreement that is resolved through alternative dispute resolution (ADR) processes, including mediation or arbitration, the prevailing party shall be entitled to recover their reasonable legal fees, including mediation or arbitration fees, from the non-prevailing party.

This variation applies to legal fees incurred in enforcing payment obligations.

If legal action is necessary to enforce payment obligations under this Agreement, the party seeking enforcement shall be entitled to recover all reasonable legal fees, including attorneys' fees, court costs, and any expenses related to debt collection or enforcement, from the non-paying party.

This variation applies to the enforcement of a dispute resolution process.

In the event that one party fails to comply with the terms of a dispute resolution agreement, the prevailing party shall be entitled to recover reasonable legal fees, including attorneys' fees and court costs, incurred in enforcing such terms or securing compliance.

This variation applies to legal fees in cases of breach of warranty.

If a dispute arises related to a breach of warranty under this Agreement, the prevailing party shall be entitled to recover all reasonable legal fees, including attorneys' fees and costs incurred to defend or pursue the breach, from the non-prevailing party.

This variation applies when claims arise from misrepresentation.

The [Party] agrees to bear all legal costs and expenses, including attorneys' fees, incurred by the other party in pursuing claims related to any misrepresentation, fraud, or deceitful conduct under this Agreement.

This variation applies when the party is defending against third-party claims.

If any legal claims are made by third parties that require the [Party] to incur legal costs to defend against such claims, the other party agrees to reimburse the legal fees incurred, provided the claims are directly related to the breach of this Agreement.

This variation applies to legal fees incurred from breaching confidentiality or non-disclosure agreements.

The [Party] agrees to indemnify the other party for any legal fees, costs, and expenses arising from the breach of confidentiality or non-disclosure terms under this Agreement. This includes the costs incurred by the non-breaching party in pursuing any legal action to remedy such breach.

This variation applies when claims involve intellectual property infringement.

The [Party] agrees to bear all legal fees, including attorneys' fees, incurred by the other party in the event of a claim related to the infringement of intellectual property rights, including patents, trademarks, or copyrights, under this Agreement.

This variation applies to indemnification in the event of lawsuits.

The [Indemnifying Party] shall indemnify and hold the [Indemnified Party] harmless from all reasonable legal fees, costs, and expenses incurred as a result of any lawsuit, arbitration, or legal proceeding arising out of the indemnifying party’s actions or failure to comply with this Agreement.

This variation applies specifically to legal fees related to arbitration.

In the event of a contract dispute that is resolved through arbitration, the prevailing party in the arbitration shall be entitled to recover its reasonable legal fees, including arbitrator's fees and attorneys' fees, from the non-prevailing party.

This variation applies to legal fees related to defending against regulatory claims.

The [Party] agrees to cover the legal fees, including attorneys' fees, incurred by the other party in defending against any claims, fines, or actions taken by regulatory bodies related to the performance or non-performance of this Agreement.

This variation applies to both parties sharing legal expenses in litigation.

In the event of litigation arising from this Agreement, both parties agree to share equally in the legal fees, including attorneys' fees and court costs, unless otherwise agreed in a settlement or judicial ruling.

This variation applies to legal fees incurred due to a breach of a non-compete clause.

The [Party] agrees to pay all reasonable legal fees, including attorneys' fees and court costs, incurred by the other party in pursuing legal action to enforce the non-compete clause of this Agreement, if the [Party] is found to be in breach of this provision.

This variation applies to disputes related to taxes.

The [Party] agrees to cover all legal fees, including attorneys' fees, incurred in any disputes arising from tax obligations related to this Agreement. This includes defense against tax audits or claims initiated by tax authorities.

This variation applies when the dispute is based on negligence.

If a dispute arises due to negligence under this Agreement, the negligent party shall be responsible for all reasonable legal fees, including attorneys' fees, costs, and expenses incurred by the other party in seeking resolution through legal proceedings.

This variation applies when the dispute involves more than one agreement.

In the event of a dispute involving multiple agreements between the parties, the prevailing party shall be entitled to recover legal fees, including attorneys' fees, related to the dispute and any proceedings necessary for the enforcement or resolution of the matters covered under those agreements.

This variation applies to legal fees incurred from a breach of indemnity.

The [Indemnifying Party] agrees to cover all legal fees, including attorneys' fees, incurred by the [Indemnified Party] in defending against any claims or disputes where indemnification is required, or when the indemnifying party fails to meet its obligations under this Agreement.

This variation applies when litigation involves the protection of trade secrets.

The [Party] agrees to bear all legal fees, including attorneys' fees, related to the protection and enforcement of trade secrets under this Agreement, including litigation costs incurred when defending or pursuing claims related to the misuse of confidential business information.

This variation applies to enforcement actions following a judgment.

If a judgment is obtained in favor of the prevailing party under this Agreement, the non-prevailing party shall pay all reasonable legal fees, including collection fees, incurred by the prevailing party in the enforcement of the judgment and any related actions.

This variation applies to disputes related to product liability.

In the event of a dispute arising from product liability claims under this Agreement, the party found responsible for the product defect or harm shall bear all legal fees, including attorneys' fees and court costs, incurred by the other party in defense or resolution of the liability issue.

This variation applies to legal fees related to shareholder disputes.

The [Party] agrees to pay all legal fees, including attorneys' fees and court costs, incurred by any shareholder in the event of a dispute regarding the terms of this Agreement, including any legal actions related to shareholder rights or claims against the company.

This variation applies to enforcement of non-disclosure agreements (NDAs).

If any party violates the terms of the non-disclosure agreement (NDA) under this Agreement, the violating party shall be liable for all legal fees, including attorneys' fees, incurred by the non-breaching party in enforcing the confidentiality provisions through legal action or settlement.

This variation applies when the dispute involves intellectual property theft.

In the event that either party is accused of intellectual property theft under this Agreement, the party found liable for such theft shall bear all reasonable legal fees, including attorney’s fees, costs, and expenses incurred by the non-offending party in defending or seeking redress through legal proceedings.

This variation applies to breaches of contract claims.

The [Party] agrees to cover all reasonable legal fees, including attorneys' fees and court costs, incurred by the other party in pursuing claims related to a breach of contract under this Agreement, including pre-litigation settlement negotiations and court proceedings.

This variation applies when the dispute arises from wrongful termination.

In the event of a wrongful termination claim under this Agreement, the prevailing party shall be entitled to recover reasonable legal fees, including attorneys' fees, incurred in the litigation or settlement process from the non-prevailing party.

This variation applies to breach of employment terms.

The [Employer] agrees to pay all legal fees, including attorneys' fees, costs, and expenses incurred by the [Employee] in pursuing any claims arising out of the breach of employment terms outlined in this Agreement.

This variation applies to legal fees when a warranty or guarantee is breached.

If a breach of warranty or guarantee occurs under this Agreement, the party found in breach shall pay all reasonable legal fees, including attorneys' fees and court costs, incurred by the non-breaching party in pursuing claims or enforcement actions related to the warranty or guarantee.

Legal fees clause for post-termination disputes

This variation applies to legal fees arising from disputes after the Agreement ends.

In the event of a dispute arising after the termination of this Agreement, the prevailing party shall be entitled to recover all reasonable legal fees, including attorneys' fees and costs, incurred in enforcing the terms of the Agreement, whether through litigation, arbitration, or settlement negotiations.

This variation applies to disputes involving third-party service providers.

The parties agree that if a dispute arises between either party and a third-party service provider under this Agreement, the prevailing party shall be entitled to recover all reasonable legal fees, including attorney's fees, costs, and expenses, incurred in resolving the dispute, provided that the dispute is directly related to the performance of this Agreement.

This variation applies to non-performance of obligations.

If a party fails to perform its obligations under this Agreement, the non-breaching party shall be entitled to recover all reasonable legal fees, including attorneys' fees and related costs, incurred in pursuing remedies for non-performance, including enforcement actions or arbitration.

This variation applies to legal fees arising from false advertising claims.

The [Party] agrees to cover all reasonable legal fees, including attorneys' fees, incurred by the other party in defending against claims of false advertising or misleading marketing practices arising out of the actions of the party covered by this Agreement.

This variation applies to cross-border legal disputes.

In the event of a dispute arising under this Agreement that involves parties in different jurisdictions, the prevailing party shall be entitled to recover its reasonable legal fees, including attorney’s fees, incurred in pursuing or defending the dispute across borders, including court costs, arbitration fees, and any applicable international legal expenses.

This variation applies when the dispute involves data protection violations.

In the event that a party violates any applicable data protection laws, including the GDPR or other privacy regulations, the violating party shall bear all legal fees, including attorneys' fees, court costs, and any penalties incurred by the non-breaching party in defending or remedying the violation through legal action.

This variation applies to legal fees when ownership of intellectual property is disputed.

If a dispute arises regarding the ownership of intellectual property under this Agreement, the prevailing party shall be entitled to recover reasonable legal fees, including attorneys' fees and related costs, incurred in resolving the dispute, whether through litigation, arbitration, or settlement.

This variation applies to legal fees when defending against fraud claims.

The [Party] agrees to pay all reasonable legal fees, including attorneys' fees and court costs, incurred by the other party in defending against any claims of fraud, misrepresentation, or deceit arising from the actions or inactions of the [Party] under this Agreement.

This variation applies when the non-compete agreement is violated.

In the event of a breach of the non-compete provisions under this Agreement, the breaching party agrees to pay all reasonable legal fees, including attorneys' fees and court costs, incurred by the non-breaching party in enforcing the non-compete clause, whether through litigation, arbitration, or settlement.

This variation applies when performance standards are not met.

If a party fails to meet the performance standards outlined in this Agreement, the non-breaching party shall be entitled to recover all reasonable legal fees, including attorneys' fees and court costs, incurred in enforcing the performance requirements, whether through litigation or settlement.

This variation applies to international disputes regarding breach of contract.

In the event of a breach of this Agreement involving international transactions, the prevailing party shall be entitled to recover reasonable legal fees, including attorneys' fees, court costs, and international arbitration expenses, incurred in resolving the dispute.

This variation applies when a defamation claim arises.

If a defamation claim arises due to the actions of either party under this Agreement, the party found liable for defamation shall be responsible for all legal fees, including attorneys' fees, court costs, and damages incurred by the other party in defending against or resolving the claim.

This variation applies to legal fees related to enforcing payment obligations.

In the event of non-payment of amounts due under this Agreement, the non-paying party agrees to pay all reasonable legal fees, including attorneys' fees and collection costs, incurred by the other party in seeking enforcement through legal means or debt recovery services.

This variation applies when the non-solicitation clause is violated.

If the [Party] violates the non-solicitation provisions of this Agreement, the violating party shall be responsible for all legal fees, including attorneys' fees, court costs, and expenses incurred by the other party in enforcing the non-solicitation provisions through legal action.

This variation applies to legal fees in disputes involving joint ventures.

In the event of a dispute between the parties in a joint venture under this Agreement, the prevailing party shall be entitled to recover all reasonable legal fees, including attorneys' fees, incurred in the course of the dispute resolution process, including arbitration, litigation, and settlement negotiations.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

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