Contract Glossary
Attorney's Fees Clause
Definition
An attorney's fees clause is a contract provision that determines who pays legal costs if a dispute ends up in court or arbitration. Under the default 'American Rule,' each side pays their own lawyers regardless of who wins. An attorney's fees clause changes this.
In Practice
Two businesses sign a service agreement with a prevailing party fees clause. The service provider fails to deliver, and the client sues. The client wins a $25,000 judgment and spent $15,000 on legal fees. Thanks to the clause, the provider now owes $40,000 total.
Example Clause
In the event of any action or proceeding to enforce or interpret this Agreement, the prevailing party shall be entitled to recover its reasonable attorney's fees, expert witness fees, and costs of suit from the non-prevailing party.
Related articles
Georgia Contract Requirements: What You Need to Know for NDAs, Freelance Agreements, and Leases
Georgia contract requirements: NDAs, freelance agreements, leases — Restrictive Covenants Act, worker classification, and more.
Michigan Contract Requirements: What You Need to Know for NDAs, Freelance Agreements, and Leases
Michigan contract requirements: NDAs, freelance agreements, leases — MARA, worker classification, and landlord-tenant rules.
North Carolina Contract Requirements: What You Need to Know for NDAs, Freelance Agreements, and Leases
North Carolina contract requirements: NDAs, freelance agreements, leases — trade secret law and worker classification.
Frequently asked questions about attorney's fees clause
The default in the U.S.: each party pays their own fees, win or lose. An attorney's fees clause overrides this for disputes arising from that agreement.
Create a contract with proper attorney's fees clause clauses
Generate a professional contract in minutes with all the essential clauses — no legal expertise needed.
Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.