#27
Contracts & DealsMedium Risk
The contract's penalty clauses apply only to you, not to the lawyer
One-Sided Terms
Why It's Dangerous
A fair contract binds both parties equally. If the contract penalizes you for breach but imposes no consequences on the lawyer for breach, the contract itself is unfair. Such one-sided terms are often deliberately inserted by lawyers who exploit information asymmetry.
Real Case
A client's engagement contract stipulated that early termination by the client required paying 50% of the legal fee as a penalty, while the lawyer could terminate services without any compensation. When the client wanted out due to the lawyer's inaction, they were trapped by the hefty penalty.
* This case has been anonymized. Details have been adjusted to protect privacy.
What To Do
1
Before signing, carefully review penalty and termination clauses2
Demand that breach-of-contract responsibilities apply equally to both sides3
If the lawyer refuses to amend unfair clauses, that itself is a warning sign4
Refuse to sign any obviously one-sided contract