Which of the following statements is true about contingent fees?

Contingent fees refer to a type of attorney fee that is based on the outcome of a legal matter, typically a percentage of the recovery amount secured for the client. The requirement that contingent fees must be agreed upon in writing is crucial because it provides transparency and protects both the attorney and the client. Having a written agreement helps to ensure that both parties have a clear understanding of the terms and prevents misunderstandings or disputes later on regarding the fee structure.

This written agreement also complies with various ethical rules and guidelines, which mandate that lawyers communicate their fee arrangements clearly to clients. Consequently, by confirming these arrangements in writing, attorneys can uphold their responsibilities while also giving clients peace of mind regarding their financial obligations.

The other options present inaccuracies about contingent fee arrangements. Contingent fees are not always fixed in advance without exceptions; they depend on the specifics of the case and can feature different structures. While they are generally based on a percentage of recovery, it is essential that this percentage is reasonable and not arbitrary or capricious. Lastly, transparency is vital in client relationships, which means that any additional fees must be disclosed upfront rather than included in any undisclosed manner.