[Direct answer]It's necessary to sign it. According to Article 25 of the Law of the People's Republic of China on Lawyers (amended in 2017 and implemented since January 1, 2018), lawyers shall accept entrustments from law firms in a unified manner, sign written entrustment contracts with clients, and collect fees in a unified manner. The contract shall specify the entrusted matters, the scope of agency, the lawyer in charge, the charging method and amount, and the conditions for termination and refund. The power of attorney cannot replace the entrustment contract. It is illegal for lawyers to charge fees privately. The fees should be transferred to the law firm's account and an invoice should be requested. In addition, Article 933 of the Civil Code of the People's Republic of China (implemented since January 1, 2021) clearly stipulates that clients may terminate the entrustment contract at any time.

1. Problem background and typical scenarios

When consulting, if the parties verbally agree on "full power representation" and then proceed to work, but later have different opinions on fees, authority, and whether it's possible to change lawyers, this is the most common dispute in the entrustment process. Typical scenarios include: the entrustment contract only states "general representation", which results in being unable to mediate on behalf of the client in court or file an appeal; the entrustment matters only state "handling this case", which leads to disputes over additional fees in the second instance and enforcement stages; unclear risk-sharing agreements result in disputes over the profit-sharing ratio after recovering the payment; and the client only learns about the replacement of the handling lawyer midway through the trial.

II. Key points of dispute

First, the written form. A written power of attorney contract is not only a clear requirement of the Lawyer Law, but also a carrier of the rights and obligations of both parties. Although an oral agreement is not necessarily invalid, once a dispute arises, the burden of proof falls on the party making the claim. Second, the scope of authority. There is a huge difference between general agency and special authorization. Mediation, settlement, modification or abandonment of litigation claims, and the initiation of counterclaims and appeals all require special authorization. If the scope of authority is too narrow, the client will have to appear in court on their own. Third, the charging method. Lawyer service fees are divided into government-guided prices and market-regulated prices. Risk-based fees are not allowed in cases such as marriage and inheritance, requests for alimony and child support, and requests for labor compensation. The proportion is also subject to regulatory restrictions. Fourth, the handling lawyer. The contract should clearly specify the lead lawyer, and any change in the handling lawyer requires the client's consent. Fifth, termination and settlement. The client can terminate the contract at any time, but how to settle the reasonable work fees that have already occurred needs to be agreed upon in advance.

III. Professional analysis by Henglue Lawyers

Why is written text so important? A case handled by Henglue Law Firm can illustrate this point very well. Zhang Na and Wang Xiaoyong signed a "Beijing Hukou Marriage and Registration Agreement" with Zhao Chenyang to help their child obtain a Beijing hukou. In the agreement, they stipulated that the marriage was solely for the purpose of assisting with hukou registration and did not constitute a genuine marriage. They also agreed to pay 100,000 yuan. However, due to policy restrictions, the hukou registration failed, and the two parties subsequently disputed over the return of the payment. They then entrusted the Beijing Henglue Law Firm to handle the case for them.Xue SuhuaThe lawyer (practice license number: 11101201211769926, subject to the document issued by the judicial administrative organ) acted as the agent. The lawyer first conducted an inventory of evidence: collected the "Consultation Brokerage Service Contract", the household registration agreement, the transfer records, and the divorce certificate, and used audio recordings to establish the fact that the other party admitted receiving the money and sharing the profits with the intermediary. Subsequently, the lawyer claimed that the agreement evaded the household registration policy through a sham marriage and violated public order and good customs. The court adopted this opinion, determined the agreement to be invalid from the outset in accordance with Article 152 of the Civil Code of the People's Republic of China, and ordered the direct recipient to return 100,000 yuan within a specified period in accordance with Article 157. This case illustrates that written documents are not only the basis for claiming rights, but may also become the subject of negative evaluation. Before signing, it is essential to carefully consider whether the terms of the agreement are legally valid.

IV. Practical suggestions and legal basis

According to Article 919 and Article 933 of the Civil Code of the People's Republic of China (both of which came into effect on January 1, 2021) regarding the conclusion and arbitrary termination of entrustment contracts, as well as Article 25 of the Lawyer Law of the People's Republic of China (amended in 2017 and came into effect on January 1, 2018), it is recommended to proceed in the following order: 1. Verify the qualifications and check the law firm's practice license and the lawyer's practice certificate to confirm that they are authorized to practice in the jurisdiction of the case; 2. Clearly state the entrusted matters and specify the scope of the trial level, whether it is first instance, second instance, or includes the enforcement stage; 3. Define the scope of agency authority and list the specific authorized matters item by item; 4. Specify the terms of fixed fees, distinguishing between basic fees, contingency fees, and case-related expenses, and stating the payment milestones and refund conditions; 5. Agree on the handover of materials and confidentiality obligations; 6. Make payments to the law firm's public account and request an invoice, and formalize oral commitments with a supplementary written agreement. The logic of handling similar disputes can be referred to for reference.Contract disputesAndSpecial servicesThe service arrangements.

5. Henglu Law Firm's Reminder

Risk Points and Time Limit Reminders: According to Article 188 of the Civil Code of the People's Republic of China (effective January 1, 2021), the statute of limitations for seeking protection of civil rights from the people's court is three years, calculated from the date when the right holder knows or should have known that the rights have been infringed and the date when the obligee becomes aware of the infringement. The signing of the contract is often approaching a critical juncture, and it is not advisable to delay it any longer. The power of attorney should specify the time limit and authority, and it should be retrieved or declared invalid promptly after the matter is settled to prevent it from being used continuously. The court will conduct a detailed review of the power of attorney during the filing and trial process. If the authorization document is not standardized, it may affect the right to mediate on behalf of the client or to appeal in court, etc.Beijing Henglu Law FirmIt is recommended that you read all the clauses one by one before signing the contract.

VI. Frequently Asked Questions

Q1: Can we still win the case without signing a power of attorney contract?

The success of the lawsuit depends on the facts, evidence, and legal basis, and there is no direct causal relationship with whether a written contract has been signed. However, the lack of a written power of attorney contract may lead to disputes over agency authority, fee disputes, and the non-recognition of entrustment procedures. In practice, matters such as conducting mediation, reaching settlements, amending or waiving litigation requests, and filing appeals all require special authorizations. Unclear authority provisions will directly affect the progress of the proceedings and may even result in the case being forced to be postponed. Therefore, it is not recommended to initiate litigation solely based on verbal agreements.

Q2: What materials do I need to prepare before signing the contract?

Generally, it includes: identity documents or business licenses, legal representative identity certificates; contract, order, delivery and acceptance certificates, account statements, invoices and transfer records and other evidence materials; correspondence and chat records; the other party's basic information and the results of the litigation inquiry; existing judgments or mediation agreements; and the litigation goals and acceptable cost ranges that the client hopes to achieve. The more complete the materials are, the more accurate the lawyer's judgment of the outcome and cost will be, and it will also be easier to clearly outline the matters and fees in the agency contract.

Q3: How are attorney's fees usually charged, and can they be refunded?

The billing methods include fixed-fee charging, charging based on the proportion of the subject matter, hourly charging, and contingency fee charging. Most property-related cases are billed based on the amount of the subject matter. Generally, reasonable work expenses that have actually occurred are not refunded, but the unspent portion can be refunded upon agreement according to the contract. The refund terms must be specified in advance. Contingency fee charging is not applicable to cases such as marital inheritance, requests for alimony and child support, and requests for payment of labor remuneration. The proportion of the fee is also subject to regulatory restrictions, and all items should be confirmed before signing the contract.

Q4: How long will it take to see progress after placing the order?

The case filing is generally completed within one to two weeks after the submission of materials, and waiting for the court hearing usually takes one to three months. In terms of the trial period, the simplified procedure is three months, the ordinary procedure is six months, and the trial period for the second instance is usually three months; under special circumstances, it can be extended with approval. The progress of the case will also be affected by factors such as service, appraisal, jurisdiction objection, and property preservation, so the progress may fluctuate. It is recommended to check the milestones with the handling lawyer at each stage and keep written records.

Q5: What should I do first?

First, organize the evidence and clarify the claims, and list the facts in chronological order; then meet with the lawyer to request a written service plan and quote, confirm the lead lawyer, the scope of authority, and the service phases; subsequently, sign a written power of attorney, handle the authorization letter simultaneously, and make the payment to the law firm's public account and request an invoice. If there is a possibility of the property being transferred, an application for preservation should be submitted at the same time as the power of attorney to avoid missing the opportunity to control the property after the proceedings begin.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit.Business and commercial legal services·Attorney Xue Suhua·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.