Letter · Costs, billing & litigation funding

Cooling-off letter for a conditional costs agreement

A letter telling the client they can end a conditional costs agreement by written notice in a cooling-off period of at least five clear business days, and what may be charged if they do.

Kind
Letter. A letter or email you adapt and send.
Where it applies
Victoria, Queensland, New South Wales
AI use
Yellow You and the tool draft together, with you directing. You check every statement you rely on.
Law stated as at
23 October 2026
Status
Maintained. Checked on 23 October 2026 against the 4 authorities it cites, for Victoria, Queensland and New South Wales.
Version
1
Source
Written for this library

When to use it

Send with a conditional costs agreement under the Uniform Law or the Legal Profession Act 2007 (Qld). Do not use it for an agreement between law practices only. In Queensland, read section 323(4) before using it for a sophisticated client.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

The tool may date the cooling-off period the lawyer has calculated and repeat the recovery limit in the section, and it must not shorten the period below five clear business days or add an uplift.

AI may

  • Insert the start and end of the period after the lawyer has counted the clear business days
  • State the written-notice address and the recovery limit in section 181(5) or section 323(5)
  • Say whether the agreement makes any disbursement payable if the client ends it in the period

AI must not

  • Must not describe a phone call as the written notice
  • Must not say the practice can recover an uplift if the client ends the agreement in the cooling-off period
  • Must not use this letter for an agreement between law practices only
  • Must not drop the cooling-off period for a Queensland sophisticated client unless the lawyer has applied section 323(4)

The lawyer checks

  • The period is not less than 5 clear business days, and the end date is the lawyer's count
  • The agreement itself contains the cooling-off period, the success definition, and the independent-advice statement
  • The matter is not a criminal proceeding and is not a proceeding under the Family Law Act 1975 (Cth)
  • For the Uniform Law, the lawyer has checked whether the Uniform Rules specify any further excluded proceedings under section 181(7)(c). Those rules were not copied here
  • The client signs this acknowledgement separately from the agreement. Both are kept in the firm's system

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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