Certified Legal Professional (CLP) Practice Exam

What limitation did the attorney propose regarding malpractice liability in the retainer agreement?

1. A flat fee for all potential damages

2. An upper limit on possible malpractice liability

3. A waiver of malpractice claims

4. A reduced hourly rate

The correct answer is: An upper limit on possible malpractice liability

The correct interpretation of the question focuses on the attorney proposing an upper limit on possible malpractice liability within the retainer agreement. This type of limitation is designed to define the maximum amount the attorney would be responsible for in the event of a malpractice claim. By establishing a cap, the attorney aims to manage potential risks and liabilities associated with their professional services, providing both the attorney and the client with a degree of predictability regarding financial exposure. Having an upper limit helps clients understand the extent of the attorney's liability while allowing attorneys to limit their potential financial risk stemming from malpractice claims that could arise during the course of their practice. This practice is often seen in professional services agreements to balance the interests of both parties and can lead to more straightforward negotiations about fees and responsibilities. In contrast, the other options do not accurately describe typical limitations in retainer agreements for malpractice liability. A flat fee for all potential damages would not truly limit liability, a waiver of malpractice claims could be seen as unethical or unenforceable in many jurisdictions, and a reduced hourly rate pertains to pricing rather than liability limits.