<P> The other rule that is in the nature of a statute of frauds governs fee agreements with clients when the attorney is to be compensated based on the outcome of the case . The Texas Government Code requires that "(a) contingent fee contract for legal services must be in writing and signed by the attorney and client ." TEX . GOV 'T CODE ANN . § 82.065 (a). The classic example is a contingent fee contract in a personal injury case that provides for the claimant's lawyer to receive a certain percentage of the settlement amount (or of the amount awarded by judgment) net of litigation costs, with the percentages typically staggered and increasing based on whether a settlement was obtained before lawsuit is filed, after a lawsuit was filed but before trial, or whether a judgment favorable to the client was obtained through trial . The other scenario is a contingency fee contract based on cost savings achieved (for a client who is a defendant sued for a money judgment) or based on other specified litigation objectives . In those cases, the client will not recover any money from his opponent in the lawsuit, and will have to pay his attorney from his or her own funds in accordance with the terms of the agreement, once the matter is concluded favorably . When the client does not pay, some attorneys then sue the client on the contingency fee contract, or in quantum meruit in the alternative . See, e.g., Shamoun & Norman, LLP v. Hill, 483 S.W. 3d 767 (Tex . App. - Dallas 2016), reversed on other grounds by Hill v. Shamoun & Norman, LLP, No. 16 - 0107 (Tex. April, 13, 2018). The attorney - vs - client fee - dispute issue generally does not arise in personal injury cases because the settlement funds from the settling party or judgment - debtor are disbursed through the attorney of the party entitled to them, net of costs and the contingency fee component . </P> <P> In addition to general statutes of frauds, under Article 2 of the Uniform Commercial Code (UCC), every state except Louisiana has adopted an additional statute of frauds that relates to the sale of goods . Pursuant to the UCC, contracts for the sale of goods where the price equals $500 or more fall under the statute of frauds, with the exceptions for professional merchants performing their normal business transactions, and for any custom - made items designed for one specific buyer . </P> <P> The application of the statute of frauds to dealings between merchants has been modified by provisions of the UCC . There is a "catch - all" provision in the UCC for personal property not covered by any other specific law, stating that a contract for the sale of such property where the purchase price exceeds $500 is not enforceable unless memorialized by a signed writing . The most recent UCC revision increases the triggering point for the UCC Statute of Frauds to $5,000, but states have been slow to amend their versions of the statute to increase the trigger point . </P> <P> For purposes of the UCC, a defendant who admits the existence of the contract in his pleadings, under oath in a deposition or affidavit, or at trial, may not use the statute of frauds as a defense . However, a statute of frauds defense may still be available under a state's the general statute . </P>

Under the ucc statute of frauds a contract must be signed by the
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