Chapter Four

Lawyer Fees and Engagement Letters in Iran

The common ways law firms in Iran charge for their work, the costs that sit outside the fee, and what a sound engagement letter should say.

Fees are often the least comfortable part of instructing a lawyer, and the part most worth discussing openly. A good firm will explain how it charges before you commit, put it in writing, and tell you promptly if the scope of the work changes. This chapter describes the common structures in general terms; it does not quote figures, because a fair fee depends entirely on the matter.

Common fee structures

Hourly rates: You pay for the time spent, usually recorded in fixed increments. Suitable where the work is hard to predict. Ask for an estimate and for notice before it is exceeded.
Fixed fees: A set fee for a defined task, such as registering a company or a trademark application. The certainty is valuable, provided the scope is precisely described.
Staged fees: Longer matters, particularly disputes, can be divided into stages with a fee or estimate for each. You keep control and can reassess at each stage.
Retainers: A periodic fee for ongoing advice, common for businesses that need a standing legal adviser. Confirm what the retainer covers and how additional work is charged.
Outcome-linked elements: Some engagements, notably in debt recovery, include an element linked to the result. Ask how it is calculated and what happens if the matter ends early.

1The lowest quote is not always the least expensive. An imprecise scope can cost more in the end than a higher, clearly defined one.

Costs outside the lawyer's fee

Expect some costs to be charged separately from the fee: court and filing costs, registry and official fees, official translation, legalisation of foreign documents, expert reports and, where relevant, travel. Ask for these to be estimated alongside the fee, and agree whether the firm will pay them on your behalf or ask you to pay them directly.

2Ask how and in what currency invoices will be issued and paid. For clients abroad this is a practical question worth settling early.

What a sound engagement letter covers

Parties and contact: who the client is, and the lawyer responsible for the file.
Scope: exactly what the firm will do, and what it will not.
Fees and expenses: the fee basis, estimates, separately charged costs and payment terms.
Communication: the language of advice, how updates will be given and how often.
Your responsibilities: documents and instructions you must provide, and by when.
Confidentiality and conflicts: how your information is protected.
Ending the engagement: how either side may end it, and what is payable if it does.

3If something important to you is not in the letter, ask for it to be added before you sign.

Questions

Frequently asked questions

How much does a lawyer in Iran cost?

It depends on the matter, its complexity and the fee structure. Rather than comparing headline figures, ask each firm for a written estimate that states what is included and what will be charged separately.

What is an engagement letter?

A written agreement between you and the firm that records the scope of work, the fee basis, expenses, responsibilities on each side and how the engagement can end.

Are official fees included in the lawyer's fee?

Usually not. Court costs, registry and official fees, translation and legalisation are commonly charged separately. Confirm this in the engagement letter.

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