Terms of Business

This Agreement sets out the Terms of Business between us MJP Law “we” “the firm” and “you” “the Client”. It contains important and useful information. The terms cover a wide range of circumstances, not all of which may apply to your matter. However, they are intended to clarify the basis on which we can act for you.

The Agreement needs to be read in conjunction with our Client Care letter which will be sent to you separately.

  1. FEES

    Our charges will be calculated mainly by reference to the time spent by Solicitors and other Executive staff dealing with your matter. This may include advising, attending on you and others, dealing with papers, letters and emails, researching, correspondence, telephone calls, travelling and waiting time and attending Court or a Tribunal Hearing. In Probate and certain other matters, however, our charges may also contain an element based on the value of either the Estate or the claim which is known as “care and control”. This is because the value is a reflection of the importance of the matter and, consequently, the responsibility of the firm.

    Where appropriate, our estimate of charges or relevant charging rate(s) is/are set out in a separate letter to you. The charging rate(s) quoted is/are reviewed annually on 31 December each year and if the matter has not been concluded before 31 December next, therefore, the rate(s) may well increase at that time (but we will then write and tell you what the new rate(s) will be).

    Unless otherwise specifically agreed with you in writing, if for any reason, the firm does not complete the work you have instructed us to do, then a charge will be made in respect of the work that has already been completed. VAT will normally be payable on that amount and you will also be billed for any "disbursements" (expenses and payments to third parties) incurred on your behalf.

    Bills, whether interim or final must be settled within 28 days.

    It is normal practice amongst solicitors to ask clients to make payments on account of anticipated fees and disbursements. Where appropriate, the person with responsibility for your matter will discuss this with you. It is helpful if you can meet requests promptly: if there is any difficulty, please let us know as soon as possible.

    Unless otherwise agreed in writing, you will be personally responsible for payment of our fees and VAT and for reimbursing any expenses we incur on your behalf.

    Directors of a Company which instructs us may be asked to be personally responsible for the payment of our accounts so that we are then happy to advise at all stages of a Company’s transactions notwithstanding that we may know that the Company is in financial difficulties.

    In the event of any fees, expenses or VAT (whether in respect of fees and expenses already incurred or in respect of fees and expenses to be incurred) not being paid we reserve the right to decline to act any further in relation to any or all matters we are dealing with until payment is made.

    It we are asked to give a solicitor’s undertaking on your behalf, we are entitled to require you to make a deposit of funds with us or give other security.

  2. INTERIM BILLS

    We shall deliver bills to you at regular intervals for the work carried out during the conduct of your matter. This assists our cash flow and enables you to budget for costs. We are sure that you will understand that in the event of a payment not being made, we must reserve the right to decline to act any further and that the full amount of the work done up to that stage will be charged to you.

  3. COMPLIMENTS/COMPLAINTS

    We aim to offer to each of our clients an effective service and we are confident that we will do so in your case. We welcome your comments. However, should there be any aspect of our service with which you are unhappy, please do immediately raise the matter with the person who has immediate responsibility for your case (who you will probably already have met). If you then find that matters remain unresolved you should, please, write in the first instance to the Principal at our Firm, setting out details of the difficulty. If you find that matters remain unresolved then if the complaint is about a member of staff please write to the Principal, Martin Pate, at 1613 Wimborne Road, Kinson, Bournemouth BH11 9AP. If the complaint is about Mr Pate himself and it has not been resolved with him then your complaint should be addressed to the Junior Vice-President, Bournemouth & District Law Society, Bournemouth Chambers, Fir Vale Road, Bournemouth BH1 2JJ tel: 01202 556151.

  4. INTEREST CHARGED

    Unless otherwise agreed, payment of each of our bills, including interim bills, is due within 28 days of its date. If the bill is not paid in full within that time it is agreed that we the firm may charge you the client interest from the date of the bill on the amount unpaid at the rate of 4% over Barclays Bank plc base rate from time to time in force subject to a minimum of 8% per annum.

  5. RETENTION OF DEEDS, DOCUMENTS ETC (LIEN)

    It is agreed that the firm may retain any deeds, documents or other materials belonging to you the client until payment of outstanding bills have been made and that we may apply money held on your behalf towards payment of outstanding bills.

  6. INTEREST RECOVERED

    In the event that you are successful in your claim and the costs of the matter fall to be paid by the other party (either in whole or in part) then, where interest is also recovered on your costs as payable by the other party, it is agreed that we are entitled to retain the whole of that interest.

    Any interest recovered on costs and disbursements after judgment is pronounced but before a Costs Assessment is made, which has not in fact been paid prior to the Assessment, shall as to the interest on costs belong to the firm and as to the interest on disbursements, be held by the firm for or on behalf of the person or persons to whom the disbursements are ultimately paid.

  7. INTEREST EARNED

    If we hold money in our bank account on your behalf, interest will be due to you in accordance with the Solicitors’ Accounts Rules 1991, which provide that, subject to certain minimum amounts and periods, notional interest is payable at the same rate as you would receive from a bank. We may apply interest towards settlement of any bill delivered to you or hold it on account of work in progress, and will retain it when it amounts, in total, to £20 or less.

  8. ORDERS FOR COSTS (ALL LITIGATION CLIENTS)

    WARNING: If you commence legal proceedings against another party and lose in whole or part, you must expect to be liable to pay their legal costs as well as your own.

    At the conclusion of your matter you may be entitled to the payment of your costs by some other party. However, it is rare for the other party to have to pay the full amount of your costs and this means that you the client may have to be responsible for the balance. Furthermore, of course, the other party may be unable to reimburse you. You remain liable to pay the full amount even though another party may be ordered to reimburse you with the whole or part of it.

    Costs Orders are a complex subject that we will be able to explain to you in greater detail if you wish.

  9. TIME

    In this Agreement the term “working day” excludes Saturdays, Sundays, Bank or other statutory holidays.

  10. COMMISSIONS AND REFERRALS

    It is possible that on occasions we may earn commission as a result of introducing you as a client to a third party. When such commission is earned, it is our policy to always disclose this fact to you but on the understanding that we may (at our discretion) credit the commission against any fees, VAT or disbursements due from you to us.

    If we are obliged to pay a referral fee to a third party as a result of your having been introduced to us then full details of that payment will always be disclosed to you.

  11. CONVEYANCING CLIENTS

    In conveyancing transactions a payment on account equivalent to our estimate at that date of the entirety of our fees for that transaction together with any VAT and any disbursements (whether incurred or to be incurred) will be required prior to completion of that transaction. We reserve the right to refuse to act for you in the completion of the transaction if such payment on account is not made prior to completion. We further reserve the right to deduct all and any monies due on completion to us from any funds in hand before accounting to you. Your matter can only be financed using funds cleared through our client account.

    WARNING: If you are likely to be away on holiday or otherwise uncontactable at any time before the completion of the transaction, please let us know immediately so that we can make appropriate arrangements including preparation of a Power of Attorney if necessary for which an additional charge or charges may be made.

  12. LIFE INSURANCE POLICIES

    Our conveyancing estimate includes dealing with the assignment or re-assignment of a single life policy (or other security) but in the event of additional policies or securities we shall make a further charge of £25 plus VAT for each additional policy or security. These charges include the preparation and service of the required Notice. We do not advise on the suitability or otherwise of any insurance policy.

  13. THE COMPLETION

    1. We recommend that there be a minimum of ten working days between exchange of contracts and completion. This period is regarded as the minimum to safely deal with all pre-completion searches and formalities (including clearing funds from the lender and from you) to enable you to be fully protected at completion. In particular, we need to hold cleared funds from you in respect of any Stamp Duty and Land Registry fees payable.
    2. If you ask us to complete your matter in less time than in 13(i) above we may charge a reasonable expedition fee at current charging rates depending upon time spent. We will notify you in writing of the charge which will be added to our fees and be payable by you. We will not be liable for any direct or consequential losses for completion being delayed beyond your specified date, provided we have used reasonable professional skill in attempting to complete on the specified date.
    3. Within seven days of completion we will send you by post a cheque in your favour (unless we have your written instructions to the contrary) for all sums held by us due to you to the address notified to us in writing at least five working days before completion.

  14. SPECIALIST SERVICES

    We are lawyers qualified to advise on conveyancing. You must consult other qualified professionals for advice on non-legal matters, such as the physical condition of a property, its connected services and its market value, or investment, financial or tax advice. Before exchange of contracts or leasing premises we strongly advise you to obtain a structural survey (of a type appropriate to the nature of the property)by a qualified surveyor and obtain any further information the report may state is required.

  15. MORTGAGES

    1. If you need a mortgage it is your responsibility to comply with the lender’s terms and conditions as set out in the offer. It is your decision to accept the financial effect of any deduction, retention, redemption, penalty or early redemption penalty interest imposed by the offer. If asked by you in writing we will explain any terms of the offer. If not, then it is assumed you fully understand the offer and the financial and other implications.
    2. All lenders require a lawyer to carry out specific legal work in granting or accepting repayment of a mortgage and you may not be aware that they require you to pay their lawyer’s legal fees for this. We are on the Panel of most lenders and they will usually instruct us to represent them as well as you in which event we confirm that, if applicable, we will provide you with an estimate of the lender’s legal fees. Your acceptance of these terms shall constitute your agreement for us to disclose instructions and information to any lender, which also instructs us.
    3. If your lender appoints their lawyer to act, you will be responsible for their legal fees in addition to our own. We will advise you in writing of the fees at the appropriate time but will continue to represent you.
    4. Most offers expire after a period of time. It is your responsibility to ensure that the offer is valid at the time of exchange of contracts. You must reapply to your lender if your offer has or is about to expire. It is also your responsibility to advise your lender and us of any change in the purchase price or any financial adjustment between you and the other party such as an allowance or cashback.
    5. It is agreed and understood that when discharging your mortgage in the course of a sale, re-mortgage or transfer of your property, we have your authority to give our firm’s undertaking in standard terms to a third party to discharge the Charge and to send evidence of the discharge to that third party.

  16. INSURANCE MEDIATION ACTIVITY

    Insurance Mediation work includes advising upon and/or arranging an Insurance Policy such as a Defective Title Indemnity Insurance in conveyancing matters or After the Event Insurance in litigation.

    We are not authorised by the Financial Services Authority. However, we are included on the Register maintained by the Financial Services Authority so that we can carry out insurance mediation activity, which is broadly the advising on, selling and administration of insurance contracts. This part of our business, including arrangements for complaints or redress if something goes wrong is regulated by the Solicitors Regulation Authority. The Register can be accessed via the Financial Services Authority website at http://www.fsa.gov.uk/register .

  17. RECEIPT OF MONIES/FINANCIAL

    1. Your matter can only be financed using funds cleared through our Client Account.
    2. We require eight full working days clearance for all cheques and bankers drafts received and we recommend that you make payment direct to our account by means of an electronic transfer. If receipt of monies are delayed because you provide funds after the specified time, or by an inappropriate means, then we will not be held liable for any direct or consequential losses for as long as the funds remain uncleared and we reserve the right to charge interest at the rate stated in paragraph 10 below.
    3. It is agreed and understood that as your Solicitors we may receive monies directed to you and credit these to you in our Client Account

  18. YOUR DEEDS/DOCUMENTS AND DATA

    A reasonable charge, (currently £30 plus VAT) will be made for storage of your deeds and documents with us.

    We are registered with the Information Commissioner's Office (No Z1155846).

    Your file of working papers may be left with us following completion of your case or matter, on the following basis: -

    1. Your file of working papers and notes, including Court Orders, may be retained by us as a "hardcopy" paper document, or at our sole option converted to and retained in an electronic format only.
    2. Save for Will preparation files, (which it is our current policy to retain indefinitely) we shall retain your papers, free of charge, for a minimum period of 6 years following completion of your case or matter.
    3. That after the 6 year period your papers will be confidentially destroyed;
    4. That we are released from all responsibility for any loss, damage or other injury suffered or claimed as a result of such destruction; and
    5. That a reasonable charge based on time spent plus VAT will be made in the respect of retrieval, checking correspondence and delivery in the event that you request your file while stored with us.

  19. CONFIDENTIALITY

    We aim to give a high quality efficient service. We may need to demonstrate our maintenance of standards to professional bodies and authorities and to other organisations. It is agreed between us that we have your authority to produce your file and other documents and to give information as an exception to our obligations as to confidentiality. Moreover, the Terrorism Act 2000, Proceeds of Crime Act 2002 and Money Laundering Regulations may require us to report matters to the appropriate authorities as an exception to the normal rules of client confidentiality.

  20. IMPORTANT - LIMITATION OF LIABILITY

    IT IS HEREBY AGREED AND CONFIRMED that the liability hereunder (whether vicarious or direct) of the firm of MJP Law and/or their successors for any loss or damage howsoever such liability shall arise (including but not limited to liability arising by reason of negligence or breach of statutory duty) shall be: Limited to the sum of Five Million Pounds Sterling (£5,000,000).

  21. AGREEMENT

    The terms of this document are not intended to form the basis of either a “Contentious Business Agreement” or a “Non-Contentious Business Agreement” within the meaning of the Solicitors Act, 1974 or the Solicitors Remuneration Order; 1994 (if they did so, it would restrict your right to challenge the fees charged by us) - although we may separately reach such an agreement with you. Distance Selling Regulations 2000; We will only start acting for you when we receive a copy of this agreement signed by you. It is agreed that you give us your permission to start work on your behalf immediately and agree that by so doing you lose the right to cancel that would otherwise apply. It is agreed and understood that conveyancing and other work which we may be instructed to carry out on your behalf will not necessarily be completed within the 30 day period referred to in these regulations.

    It is agreed that where we act for two or more clients we may (unless written instructions are given to the contrary) accept instructions from one of you on behalf of all of you.

    This Agreement supersedes any previous agreement between the parties and is made between you the client(s) who have signed below and us MJP Law, Solicitors, and/or its Partners for the time being and/or their successor and until otherwise agreed, shall apply to any future instructions given by you the client(s) to MJP Law.