If you're paying a lawyer by the hour, the agreement should set out the hourly rates of the lawyer and anyone else in the lawyer's office who might work on the case. It should state how often you will be billed, how much detail the bill will include and how long you have to pay the bill. If the lawyer will require you to pay a deposit in advance (often called a "retainer"), the agreement should include the amount of the retainer.

If you're paying a contingency fee, the agreement should indicate what percentage of any award the lawyer will take, whether that percentage will change over the course of the lawsuit (some lawyers collect a higher percentage if the case goes to trial than if the case settles beforehand) and how the lawyer will collect the money.

The agreement should also explain how litigation costs will be handled. These costs include court fees, fees charged by expert witnesses, private investigators, process servers or stenographers, copying costs, travel expenses or messenger fees, for example. Not surprisingly, litigation costs can really mount up -- especially if a case goes all the way to trial. Your agreement should spell out which of these costs you'll have to pay, which (if any) your lawyer will pick up and when you'll be expected to pay them. Some lawyers in contingency fee cases will front the money for costs; if the client wins, the lawyer is reimbursed from the award, but a client who loses has to figure out some way to pay back the lawyer.