attorneys fees
Definition
Attorneys fees are the money paid to a lawyer for their legal services, which can be charged by the hour, as a flat rate, or as a percentage of money won in a case. In many legal disputes, each side pays their own lawyer regardless of who wins, but some contracts or laws require the losing party to cover the winner's legal costs.
Example
If your business contract includes an attorneys fees clause and a client refuses to pay you, a judge could order that client to reimburse you for every dollar you spent on your lawyer to collect the debt.
Watch Out
Before signing any contract, check whether it includes an attorneys fees clause, because if you end up on the losing side of a lawsuit, you could owe the other party thousands of dollars in legal bills on top of whatever the court orders you to pay.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.