---
title: "Cooling-off letter for a conditional costs agreement"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/conditional-costs-cooling-off-letter"
type: "precedent"
site: "AI Law Framework"
id: "a42-conditional-costs-cooling-off-letter"
area_id: "A42"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A42-PE20261022-2"]
law_stated_as_at: "2026-10-23"
---

# 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.

Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/conditional-costs-cooling-off-letter  
Law stated as at: 2026-10-23

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md)
- Jurisdictions: Victoria, Queensland, New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-23
- Status: Maintained. Checked on 2026-10-23 against the 4 authorities it cites, for Victoria, Queensland and New South Wales.

## 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

- [Check a conditional costs agreement for the required content and any uplift cap](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/check-a-conditional-costs-agreement-for-the-required-content-and-any-upl.md)

## 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

## Authorities

- [Legal Profession Uniform Law (NSW) s 181(4) and (5) (cooling-off of not less than 5 clear business days, except an agreement between law practices only; recovery in that period is limited and excludes the uplift)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s181.html)
- [Legal Profession Act 2007 (Qld) s 323(3)(e) and (5) (cooling-off of not less than 5 clear business days; the same limit on recovery, and no uplift)](https://classic.austlii.edu.au/au/legis/qld/consol_act/lpa2007179/s323.html)
- [Legal Profession Act 2007 (Qld) s 323(4) (signature, independent-advice statement and cooling-off do not apply to a section 322(1)(c) agreement or a sophisticated client)](https://classic.austlii.edu.au/au/legis/qld/consol_act/lpa2007179/s323.html)
- [Legal Profession Uniform Law (NSW) s 181(7) (a conditional costs agreement must not be used for criminal proceedings, Family Law Act 1975 (Cth) proceedings, or proceedings specified in the Uniform Rules)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s181.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/costs-billing-and-litigation-funding/conditional-costs-cooling-off-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*