Chapter 3 Flashcards

Question

What are the exact words used to administer an affirmation?

Answer 1

✅ The deponent must say: 🗣️ "I truly affirm that the contents of this declaration are true." ✍️📜

Answer 2

🏳️ The Commissioner of Oaths must first satisfy himself as to the identity of the deponent.

Answer 3

👀 Whether the deponent knows and understands the contents of the declaration. ⚠️ Whether the deponent has any objection to taking the oath or making the affirmation. ⚖️ Whether the deponent considers the oath or affirmation binding on their conscience.

Answer 4

⛰️ The deponent must say: "I swear that the contents of this affidavit are true, so help me God."

Answer 5

🎯 The deponent must say: "I truly affirm that the contents of this declaration are true."

Answer 6

: 📚 The deponent must sign the affidavit or declaration in the presence of the Commissioner.

Answer 7

🎓 Certify that the deponent knows and understands the contents of the affidavit/declaration. 📅 State the date and place of taking the affidavit/declaration. 📝 Sign the affidavit/declaration. 🏢 Print his full name and business address below his signature. 🏛️ State his designation and area of appointment or office held ex officio.

Answer 8

🔒 No, the deponent must sign in the presence of the Commissioner to prevent fraud and maintain the solemnity of the oath procedure.

Answer 9

🛑 No, unless it is: 📃 An affidavit required for the registration of a transaction in the Deeds Registry. 💪 An affidavit required to be submitted to the Minister of Justice.

Answer 10

💼 An attorney is automatically a Commissioner of Oaths ex officio.

Answer 11

⛔ No, because they have an interest in the matter. However, an attorney may administer an oath in conveyancing matters as they are specifically excluded from this restriction.

Answer 12

A conflict of interest is anything that is likely to affect an attorney's judgment adversely in advising or representing their client. ⚖️

Answer 13

A conflict of interest is anything that adversely affects an attorney's judgment or loyalty in representing or advising a client. 🔍 Examples: 1️⃣ An attorney representing both sides in a litigation case. ⚖️⚖️ 2️⃣ Using confidential information from a previous client to assist a new client. 🔐➡️📜 3️⃣ Acting in a matter where the attorney has a personal interest that conflicts with the client's best interests. 💰💼

Answer 14

Yes, an attorney may act for both parties in non-litigious matters, such as conveyancing. 🏡 However, if a conflict arises between the parties, the attorney must cease acting for one or both clients to avoid ethical breaches. 🚨

Answer 15

The attorney represented both co-accused, where: 1️⃣ The son’s testimony contradicted the father’s defense. 🤯 2️⃣ The attorney had access to confidential information from both, which could not be fairly used. 🔐 3️⃣ This created an ethical and legal conflict, making the attorney’s position untenable. 🚫⚖️

Answer 16

A conflict of interest arises when: 1️⃣ An attorney must use confidential information from one client to benefit another. 🕵️‍♂️🔐 2️⃣ An attorney must warn one party to make inquiries that would harm the interests of another client. ⚠️

Answer 17

An attorney is under an absolute duty not to disclose any confidential information obtained during a mandate. 🔐 This duty continues even after the termination of the mandate. 📜✅

Answer 18

An attorney must immediately terminate the mandate for one or both clients. 🚨 If litigation is likely, each client must be separately represented. 🏛️👨‍⚖️👩‍⚖️

Answer 19

No, because the attorney may have gained confidential information that could impact the new case. 🔎💼 This creates a conflict between loyalty to the former client and duty to the new client. ⚠️

Answer 20

Yes, but only until a conflict arises. 🏢🏦 If disputes emerge (e.g., breach of contract), the attorney must withdraw from representing both parties. 🚨

Answer 21

No! 🚫 Because: 1️⃣ The attorney has inside knowledge of the negotiations. 🤝 2️⃣ There is a direct conflict of interest. ⚠️ 3️⃣ The attorney may be a witness in future litigation. 👨‍⚖️👀

Answer 22

🚨 Withdraw from representing both spouses! 🚨 If conflicts arise over assets, the attorney may be compromised and should refer both parties to separate lawyers. 👨‍⚖️👩‍⚖️

Answer 23

No! ❌ Because: 1️⃣ The attorney gained financial knowledge that may be relevant in the divorce case. 🔍 2️⃣ This creates a conflict of interest between the previous and new mandates. ⚠️

Answer 24

✅ Yes, but with caution! ✅ If the attorney only collected debts and had no access to confidential internal policies, they can act against the insurance company. ⚖️ However, it may harm their business relationship. 🤝🚨

Answer 25

⚖️ Borderline case! ⚖️ 1️⃣ If no confidential information was shared, the attorney may accept the mandate. ✅ 2️⃣ However, it may damage their professional relationship with the long-term client. 🚨💼

Answer 26

✅ Yes, but only if the divorce is truly uncontested. ⚠️ If disputes arise, the attorney must withdraw and refer them to separate lawyers.

Answer 27

📚 The common law rules on conflict of interest remain intact. The Code of Conduct provides additional guidelines and examples but does not replace established common law principles.

Answer 28

🤝 Conflicts of interest involving legal practitioners. 👥 Conflicts of interest among clients of legal practitioners.

Answer 29

⚠️ A legal practitioner must avoid personal (as opposed to professional) associations with a client's interests.

Answer 30

🚫 No, Rule 58.2 explicitly prohibits legal practitioners from standing bail for a client.

Answer 31

❌ No, Rule 58.3 states that a legal practitioner cannot appear before any adjudicative body where they are a member.

Answer 32

🅿️ Rule 58.4 states that they must refuse the brief if they received confidential information that could prejudice the previous client.

Answer 33

📑 Yes, under Rule 58.5, but only if: No confidential information was received that could prejudice the previous client. Both parties (or their attorneys) consent.

Answer 34

⛔️ No, Rule 58.6 prohibits this to maintain impartiality.

Answer 35

🚫 No, Rule 58.7 prohibits accepting such a brief in related proceedings.

Answer 36

❌ No, Rule 58.8 states that this creates a conflict of interest.

Answer 37

👩‍🎓 Any personal, family, or other relationships with the client or opposing party that could compromise independence.

Answer 38

❌ No, Rule 58.10 prohibits this if it compromises their independence.

Answer 39

⛔️ No, Rule 58.12 prohibits this if their prior role compromises their independence.

Answer 40

👋 Rule 59.1 states they must withdraw from representing one or all clients as soon as possible.

Answer 41

⚠️ Rule 59.1.1 states they must not act in proceedings involving the prejudiced client.

Answer 42

🤔 Yes, under Rule 59.1.2, they may continue representing a client as nominated by the instructing attorney.

Answer 43

✅ Yes, under Rule 59.2, but they must advise both parties of their right to independent legal advice.

Answer 44

🏞️ Rule 59.2 requires them to take active steps to ensure fairness and the best interests of the children.

Answer 45

🏆 To uphold professional integrity, ensure impartiality, protect client confidentiality, and maintain trust in the legal system.

Answer 46

Under common law, contingency fee agreements (including pactum de quota litis) were illegal, meaning legal practitioners could not charge fees dependent on the outcome of litigation. ❌⚖️

Answer 47

The Contingency Fees Act 66 of 1997 was enacted to legitimize contingency fee agreements between legal practitioners and their clients. ✅📜

Answer 48

The Act allows for: 1️⃣ "No win, no fees" agreements – The client only pays if they win the case. 💸❌ 2️⃣ "Increased fee in case of success" – The legal practitioner charges a higher-than-normal fee if the case is successful. 📈💼

Answer 49

A: The court confirmed that any contingency fee agreement not complying with the Contingency Fees Act is invalid and unenforceable. 🚫⚖️

Answer 50

A: If a legal practitioner charges an increased fee in a successful case, it: ✔️ Cannot exceed 100% of their normal fees. ✔️ Cannot exceed 25% of the amount awarded or obtained by the client (excluding costs).

Answer 51

The Act makes speculative litigation possible by allowing "no win, no fee" agreements, which means clients can pursue claims without upfront legal costs. 🎰💼

Answer 52

The court warned that contingency fee agreements must be strictly supervised to protect clients and ensure that their rights are not compromised. 🔍⚖️

Answer 53

The court held that any contingency fee agreement not covered by the Act is illegal and unenforceable. 🚫⚖️

Answer 54

The attorney takes on the financial risk of litigation, hoping for a successful outcome. If the case is unsuccessful, they receive no payment. If successful, they are entitled to a higher-than-normal success fee. 💸📈

Answer 55

Section 2 permits attorneys to enter contingency fee agreements, allowing them to charge a higher-than-normal fee as compensation for the risk of not getting paid if the case fails. ⚖️💰

Answer 56

It authorizes attorneys to charge a success fee that is higher than their normal fee as a reward for taking on the financial risk. 🏆💼

Answer 57

The court held that the success fee is an incentive for attorneys, allowing them to charge a higher fee, but subject to legal caps to protect clients. 🔍🛡️

Answer 58

According to Section 1.11 of the Rules under the Act, normal fees are the reasonable fees that an attorney would charge on an attorney-and-own-client basis, without a contingency fee agreement. 💼💰

Answer 59

Section 1.12 states that a success fee is the total amount an attorney may charge in case of success, which includes: ✔️ The normal fee 📜 ✔️ An additional amount as a success reward 💰 The total of these two amounts makes up the success fee. 📈

Answer 60

Attorneys can enter into agreements where: 1️⃣ They charge no fee if the client loses. ❌💼 2️⃣ They charge a normal or higher fee if the client wins. ✅💰

Answer 61

A success fee cannot exceed: ✔️ 100% of the attorney's normal fee 📈 ✔️ 25% of the total amount awarded to the client (excluding legal costs) 💸

Answer 62

The Act regulates agreements through: ✔️ Section 3 – Agreement requirements 📝 ✔️ Section 4 – Settlement procedures ⚖️ ✔️ Section 5 – Client’s right to review 📢 💡 Agreements not complying with the Act are illegal! 🚫

Answer 63

The agreement must be: 1️⃣ In writing ✍️ 2️⃣ In the prescribed form as per Rules under Section 6 📜 3️⃣ Signed by both parties 🤝 📌 A copy must be given to the client on the date of signing 📅

Answer 64

The agreement must specify: ✔️ The proceedings it applies to ⚖️ ✔️ That the client was advised about alternative financing options 💰🔄 ✔️ That the client understands they may have to pay opponent's costs if they lose ❌💸 ✔️ That the client will pay a success fee if they win ✅💰 ✔️ That the client fully understands the agreement 🧠💡

Answer 65

The legal practitioner must file an affidavit with the court confirming compliance with the Act. 📜✅

Answer 66

The client may refer the matter to the Legal Practice Council (LPC) ⚖️📢 ✔️ The LPC can review the agreement 🔎 ✔️ It can set aside any unfair provisions or excessive fees ❌💰

Answer 67

The Act aims to encourage attorneys to take on speculative cases where clients might otherwise lack legal representation. 👨‍⚖️💼 💡 The legislature believed that potential conflicts of interest would not lead to abuses and that this system helps more people access justice. ⚖️💪

Answer 68

A contingency fee agreement must be: ✅ In writing 📝 ✅ In the prescribed form as per the Rules under Section 6 of the Act 📃 ✅ Signed by both parties ✍️ ✅ A copy must be delivered to the client on the date of signing 📩

Answer 69

The agreement must state: 📌 The proceedings it relates to ⚖️ 📌 The client was advised of alternative ways to finance the case 💰 📌 The client was informed about liability for party-and-party costs if unsuccessful 🚨 📌 The client understands they must pay the success fee if they win 🏆 📌 The client fully understood the agreement before signing 🤝

Answer 70

The legal practitioner must file an affidavit with the court 📑 👉 Certain requirements must be met before accepting the offer ✅

Answer 71

📌 The client may refer the agreement or fees to the Legal Practice Council (LPC) ⚖️ 📌 The LPC can review and set aside any unfair provision or excessive fees 🚫

Answer 72

📌 Attorneys may enter into a contingency fee agreement 🤝 📌 The agreement must be: ✅ In writing 📝 ✅ In prescribed form 📃 ✅ State the contingency conditions and how fees are calculated 💵 ✅ Inform the client about all available financing options 📢 📌 Attorneys cannot charge more than double the normal fee or 25% of the recovered amount, whichever is lower 📊

Answer 73

📌 The attorney can act on a contingency basis ⚖️ 📌 If the client wins, the attorney can charge a success fee (not exceeding double their normal fee or 25% of the recovered amount) 🏆 📌 If the client loses, the attorney receives no fees ❌ 📌 The attorney must enter a written agreement that complies with the Contingency Fees Act 📜

Answer 74

📌 The attorney must charge a reasonable fee for services ⚖️ 📌 If the client wins, the court may order the defendant to pay costs but only on a party-and-party basis 🏛️ 📌 The client must pay any additional attorney fees out of pocket 💵 📌 The attorney can offer payment in installments or a deposit plan to assist the client 💳

Answer 75

📌 A written agreement in the prescribed form must be signed 📝 📌 The agreement must explain when fees are payable and how they are calculated 📊 📌 The client must be fully informed of all options before signing ⚠️ 📌 The attorney cannot charge more than double their normal fee or more than 25% of the capital award 🏆 📌 If a summons is issued, the court must approve the settlement 📜 📌 If no summons is issued, the Legal Practice Council must approve the settlement ✅

Answer 76

📌 Client's damages: R500,000 💰 📌 Defendant's damages: R600,000 💰 📌 Apportionment: ✔️ Client’s damages = R500,000 × 80% = R400,000 ✔️ Defendant’s damages = R600,000 × 20% = R120,000 ✔️ Net award to client = R280,000 📌 Attorney’s maximum fee: ✔️ 25% of R280,000 = R70,000

Answer 77

📌 The attorney should enter into a contingency fee agreement 🤝 📌 If the case is successful, the attorney can charge a success fee 📜 📌 The fee cannot exceed double the normal fee or 25% of the court award 💰 📌 In Mrs. Gold’s case: ✔️ Court award: 🔹 Special damages: R325,000 🔹 General damages: R250,000 ✔️ Attorney’s normal fee: R65,000 ✔️ Maximum fee allowed: R130,000 (double the normal fee) ✔️ Not allowed: R143,750 (25% of R575,000), since it exceeds double the normal fee 🚫

Answer 78

A correspondent attorney is an attorney in another city who performs legal tasks on behalf of the instructing attorney. They act as the local representative for legal matters in the jurisdiction where the case is being heard or a service must be executed. ⚖️📍

Answer 79

A correspondent attorney must comply with the same ethical rules as the instructing attorney. This includes professionalism, diligence, and avoiding direct communication with the client. ⚖️🔍

Answer 80

1️⃣ Must perform tasks with care, diligence, and professionalism like the instructing attorney. 🏛️ 2️⃣ Cannot communicate directly with the client or settle matters without instructions. 🚫💬 3️⃣ Is usually entitled to a one-third fee allowance unless agreed otherwise. 💰🔢

Answer 81

No! ❌ Once a client is under cross-examination, their attorney may not consult with them at all. This prevents the attorney from advising them on how to answer or rectify evidence already given. 🎤⚖️

Answer 82

1️⃣ Must respect the dignity of the witness. 🤝 2️⃣ Can only put forward facts that can be substantiated by evidence. 🔎 3️⃣ Cannot make unfounded allegations against a witness. 🚫🗣️

Answer 83

1️⃣ If the instructing attorney is satisfied that the allegation is well-founded. 🏛️ 2️⃣ If the information comes from a reliable source and the attorney has reason to believe it is true. 🔍📜 3️⃣ The allegation must be material to the credibility of the witness or relevant to the case. 📌

Answer 84

The Browne v Dunn rule states that if an attorney intends to challenge a witness's credibility, they must put the challenge to the witness during cross-examination. This ensures the witness has a chance to respond, defend their character, or clarify contradictions. ⚖️💡

Answer 85

No! ❌ A legal practitioner must not recklessly accuse a witness of a crime unless: ✔️ There is reasonable suspicion supported by evidence. 🔍 ✔️ The available facts allow for a rational inference that the witness may be involved. ⚖️

Answer 86

Yes, it is not unethical to defend a person whom the attorney knows to be guilty. ⚖️ Every person has the right to legal representation, and the onus is on the State to prove guilt beyond reasonable doubt. However, the attorney must not mislead the court or allow the client to give false evidence. The attorney may cross-examine State witnesses to test their credibility. 🏛️

Answer 87

No, it is not unethical because an attorney's duty is not to determine guilt but to provide the best defense for their client. 🏛️ The onus remains on the State to prove the Accused’s guilt beyond a reasonable doubt. The attorney must not mislead the court but may test the State’s case through cross-examination.

Answer 88

Entering a plea of "not guilty" does not mean denying the acts alleged—it simply places the burden on the State to prove the case. 🔍⚖️ The court understands this principle, so it is not considered misleading unless the attorney presents evidence or arguments that contradict what the accused privately admitted.

Answer 89

Yes, every accused person has the constitutional right to plead "not guilty" and have legal representation. ⚖️ To remain ethical, the attorney must: ✔️ Ensure the accused gives no plea explanation. ✔️ Avoid making false statements during cross-examination. ✔️ Test the credibility of State witnesses without misleading the court. ✔️ Apply for a Section 174 discharge if appropriate. ✔️ If discharge is denied, close the case without leading evidence and argue that the State failed to prove guilt beyond a reasonable doubt.

Answer 90

The magistrate must recuse herself due to a conflict of interest. ⚖️ If she does not: 1️⃣ Inform her in chambers about the recusal request. 2️⃣ If she refuses, apply for recusal in open court. 3️⃣ If she still refuses, continue with the trial. 4️⃣ If the client is acquitted, no issue arises. 5️⃣ If convicted, grounds for review exist. 🔄

Answer 91

It prohibits attorneys from accepting money intended to pay for future legal services related to anticipated criminal charges. 💰❌ This prevents conflicts of interest and ensures attorneys do not encourage or become complicit in criminal behavior.

Answer 92

An attorney may only interview a state witness if: ✔️ The prosecution consents. ✔️ A court grants permission. ✔️ If conditions are imposed, the attorney must strictly follow them. 🔍⚖️

Answer 93

An attorney may not pay an agent's commission in advance unless: The funds come from the person liable for the commission. 💰 The attorney has express authority from that person. ✍️ The agreement of sale should specify when payment is due. 🏡 Normally, payment is due on registration of the transaction in the Deeds Registry, unless another date is specified. 📜

Answer 94

The normal practice is to pay commission on the date of registration of the transaction in the Deeds Registry. 🏛️ If the agreement specifies another date, the payment must follow that. 📆 Advance payment is only allowed if rule 14 of the Code is followed. 📜

Answer 95

Attorneys cannot pay commission in advance unless: The money comes from the person liable for it. 💰 The person has given express authority. 📝 Attorneys must not use their own funds for this purpose. ❌

Answer 96

An attorney is guilty of touting if they: Solicit work in an improper, unprofessional, unfair, or unethical manner. 🚫 Pay money or offer financial rewards for work referrals. 💸 Engage in arrangements where a third party secures work for them. 🤝

Answer 97

The attorney loses objectivity and independence. ⚖️ It compromises the attorney’s professional ethics. 📜 It may create conflicts of interest in legal matters. ❌

Answer 98

An estate agent cannot recommend an attorney without good and sufficient cause. ⚠️ This rule prevents biased referrals and maintains professional integrity. ✅

Answer 99

Legal fees are regulated by the principle of reasonableness. ⚖️ Any agreement charging unreasonable fees is invalid. ❌

Answer 100

The registrar of the High Court or clerk of the magistrates’ court can tax fees in litigation. 🏛️ The Legal Practice Council can tax fees in non-litigious matters. 📜 Courts can determine reasonable fees in disputes. ⚖️

Answer 101

Assess, quantify, and certify costs. 💰 Ensure a moderating balance between parties. ⚖️ Prevent excessive charges against the losing litigant. 🚫 Ensure the winning litigant is not under-compensated. 🏆

Answer 102

Fees charged by other legal practitioners in similar cases. ⚖️ Seniority of the attorney. 🎓 Time taken to complete the work. ⏳ Nature of the work performed. 📝

Answer 103

Clients do not owe attorneys full indemnity but must pay reasonable fees. 💰 Reasonable rates are based on time spent, seniority, and industry norms. ⚖️

Answer 104

To assess, quantify, and certify costs. 🏛️ To balance the interests of both litigants fairly. ⚖️

Answer 105

A cost consultant who drafts a bill acts as an expert witness. 🎓 They must have the right of appearance at taxation hearings. 🏛️

Answer 106

Yes, but only for party and party costs. 📜 The taxing master still has discretion in applying the tariff. ⚖️

Answer 107

Legal fees are regulated by the principle of reasonableness ✅. Any agreement to charge unreasonable fees is invalid 🚫.

Answer 108

Attorney and client fees – Registrar of the High Court or Clerk of the Magistrates’ Court upon client request. 🏛️ 2️⃣ Party and party fees – Must be taxed before a writ of execution is issued. 📜 3️⃣ Non-litigious matters – Fees may be reviewed by the Legal Practice Council. 📖

Answer 109

The payment by a client to their attorney is not a full indemnity but rather a reasonable recompense for services rendered 💰. When determining reasonableness, courts consider: 1️⃣ Fees charged by other legal practitioners ⚖️ 2️⃣ Seniority of the attorney 👨‍🎓 3️⃣ Time spent on the work ⏳ 4️⃣ Nature of the work performed 🏛️

Answer 110

1️⃣ Assess, quantify, and certify costs. 💰 2️⃣ Ensure an equitable balance between: The losing litigant (who should not pay excessive charges). ❌ The winning litigant (who should not be inadequately indemnified). ✅

Answer 111

A legal practitioner must have the right of appearance to present a bill for taxation. ⚖️ The cost consultant who drafted the bill acts as an expert witness during taxation. 👨‍💼

Answer 112

Rule 70 binds the taxation of party and party costs. 📜 The taxing master still has discretion in determining fees. ⚖️

Answer 113

Not necessarily because attorneys overcharge, but because they fail to explain fees adequately upfront. 💬❌

Answer 114

1️⃣ Clearly explain estimated fees at the outset. 📢 2️⃣ Discuss disbursements (e.g., counsel’s fees). 💰 3️⃣ Clarify who will be responsible for paying the fees. 🤝

Answer 115

The attorney is assumed to charge a reasonable fee, which is the magistrate’s court tariff. ⚖️ Cannot charge interim fees, only entitled to payment once the mandate is executed. ⏳

Answer 116

Negotiate a fee agreement with the client. 🤝 The agreement should specify: 1️⃣ Hourly rate or other fees. 💰 2️⃣ Terms of payment. ✅ 3️⃣ Scope of work covered. 📜

Answer 117

Before the Code of Conduct: Legal Practice Council assessed fees. ✅ After the Code of Conduct: Fees inquiry by an authorized sub-structure of the Council. 🔍

Answer 118

The attorney must prove the fees are reasonable and that the work was: 1️⃣ Necessary to be done. 📜 2️⃣ Requested by the client or instructing attorney. 💼

Answer 119

The attorney is assumed to charge the magistrate’s court tariff. ⚖️ Cannot charge interim fees, only entitled to payment after completing the mandate. ✅

Answer 120

1️⃣ Advise the client to request taxation by the Legal Practice Council. 📑 2️⃣ Negotiate a reasonable fee with the colleague. 🤝

Answer 121

1️⃣ Complexity of the case 🤯 2️⃣ Skill and knowledge required 🎓 3️⃣ Time spent on the matter ⏳ 4️⃣ Length and importance of documents 📜 5️⃣ Value of money/property involved 💰 6️⃣ Location of service rendered 🌍 7️⃣ Importance to the client 👤

Answer 122

1️⃣ Approach the Legal Practice Council for fee assessment. 📜 2️⃣ Council will consider: Complexity of the matter Time spent Urgency Amount involved Seniority of the attorney

Answer 123

1️⃣ The Legal Practice Council assesses the fee. 🔍 2️⃣ Considerations include: Attorney’s experience and skill 🎓 Possible overcautiousness/negligence ⚠️ Complexity and importance of the matter 🤯 Amount of work done 📑

Answer 124

An attorney may not enter into any agreement, directly or indirectly, that results in securing professional work through a non-attorney for a reward (money or kind). However, this does not limit bona fide and proper marketing activities

Answer 125

No. An attorney cannot enter into any agreement, arrangement, or partnership—whether express, tacit, or implied—where the result is securing professional work through a non-attorney for a reward.

Answer 126

An attorney must submit an affidavit within seven days explaining: The presence and role of an employee, The nature of their remuneration, Details of any non-attorney associated with the practice or frequently present at the attorney’s office.

Answer 127

No. An attorney cannot present themselves as practicing while employed by a non-attorney, unless permitted under Section 34 of the Legal Practice Act.

Answer 128

No. An attorney cannot share fees earned with a candidate attorney.

Answer 129

Yes. An attorney may pay a commission to a candidate attorney based on the fees the candidate attorney generates.

Answer 130

No. An attorney cannot share fees with counsel.

Answer 131

Attorneys and advocates practicing with a Fidelity Fund Certificate must comply with the fee disclosure requirements. Advocates practicing on a referral basis are not required to comply.

Answer 132

The cost estimate notice must include: 1️⃣ The likely financial implications, including fees, charges, and disbursements. 2️⃣ The attorney’s or advocate’s hourly rate and the client’s right to negotiate fees. 3️⃣ An outline of work to be done for each stage of litigation (if applicable). 4️⃣ The possibility of engaging an advocate and the factors affecting their fees (seniority, expertise, etc.). 5️⃣ The legal and financial consequences of client withdrawal from litigation and the cost recovery process.

Answer 133

No. Referral-based advocates are not required to provide cost estimates to clients directly. However, they may need to provide a cost estimate to the instructing attorney, who must disclose costs to the client.

Answer 134

The following legal practitioners must have an FFC: 1️⃣ Attorneys or trust account advocates practicing for their own account, either alone or in a partnership. 2️⃣ Directors of incorporated law firms.

Answer 135

The following individuals do not need an FFC: Professional assistants Candidate attorneys Associates However, they must be employed or associated with someone who has an FFC.

Answer 136

🚫 No! A legal practitioner without an FFC cannot: 1️⃣ Receive or hold funds or property belonging to any person. 2️⃣ Allow any person they employ or supervise to receive or hold such funds.

Answer 137

If an attorney does not have an FFC: ❌ They cannot hold funds or property in trust. ❌ Their clients are not covered by the Legal Practitioners Indemnity Insurance Fund (LPIIF). ❌ They are not entitled to fees, rewards, or disbursements while acting without an FFC.

Answer 138

A Fidelity Fund Certificate is valid for one year, from January to December.

Answer 139

The regulators of the Fund issue Fidelity Fund Certificates annually through an online system provided by the Fund.

Answer 140

The Attorneys Fidelity Fund protects clients by reimbursing them for pecuniary losses suffered due to: 💰 Theft of money or property entrusted to an attorney. ⚰️ An attorney acting as executor or administrator of a deceased estate. 💼 An attorney acting as a trustee in an insolvent estate.

Answer 141

The online Legal Practitioners Fidelity Fund Certificate Application Form was published on 30 September 2015.

Answer 142

1️⃣ First-time login: The attorney must enter their ID number and email address (same as provided to the regulator). 2️⃣ Verification: The system verifies the details against the regulator’s records. 3️⃣ Activation: The attorney receives an email/SMS to activate their login. 4️⃣ Access & submission: The attorney can then access the secure portal, complete the application, and submit it.

Answer 143

Attorneys must have financial information for the previous four calendar quarters (from 01 October to 30 September of the following year). They must also provide: 📌 FICA registration number 📌 Financial Services Provider (FSP) number (if running an investment practice) 📌 Firm’s Registration number (for incorporated law firms)

Answer 144

Attorneys can find a step-by-step user guide on the Fidelity Fund’s website to assist with the application process.

Answer 145

The Legal Practice Fidelity Fund was established to reimburse members of the public who suffer financial loss due to the theft of money or property entrusted to an attorney, their employee, or candidate attorney. 💰⚖️ (2)

Answer 146

A Fidelity Fund Certificate (FFC) is a certificate issued in terms of Sections 84 and 85 of the Legal Practice Act 28 of 2014 to any legal practitioner who practices: 1️⃣ For their own account, either alone or in a partnership. 2️⃣ As a director of an incorporated law firm. 🔹 The certificate remains valid until 31 December each year. 📆✅

Answer 147

🔹 Requirements for First-Time Application: 1️⃣ The attorney must apply to the Legal Practice Council for an FFC (s 85(1)(a)). 2️⃣ They must complete and submit the prescribed electronic or hard copy application form (Rule 47.1). 3️⃣ The form must be submitted by 1 December of the year it was sent (Rule 47.3). 4️⃣ Not receiving the form does not exempt the attorney from applying (Rule 47.4). 5️⃣ The attorney must pay the required contribution set by the Council (s 85(2)). 6️⃣ First-time applicants must complete a Legal Practice Management Course and provide proof (s 85(1)(b), Rule 47.7.1). ⚠️ Consequences of Failing to Renew: 🚫 Without an FFC: 1️⃣ The attorney may not continue practicing or receive trust funds. 2️⃣ They commit an offence if they continue to practice without an FFC.

Answer 148

1️⃣ What is a Fidelity Fund Certificate? (2) 🔹 A certificate that permits attorneys to hold trust funds and practice law legally. 2️⃣ How and when is it obtained? (5) ✅ Apply via electronic or hard copy form before 1 December. ✅ Ensure all financial obligations to the Legal Practice Council are met. ✅ Pay the required contribution. ✅ Complete the Legal Practice Management Course (if first-time applicant). ✅ Submit proof of course completion. 3️⃣ Consequences of Failing to Renew the Certificate? (3) ⚠️ Legal consequences include: 1️⃣ Cannot practice or charge fees for services. 2️⃣ Committing an offence if practicing without it. 3️⃣ Suspension or removal from the roll of practitioners.

Answer 149

🔹 Client’s Right of Recourse: 1️⃣ Against the bank? 🚫 None. The client is not the bank’s customer. (2) 2️⃣ Against the Legal Practitioners' Fidelity Fund (LPFF)? 🚫 None. The LPFF does not cover bank insolvencies. (2) 3️⃣ Against Attorney C? ✅ Yes. Attorney C is liable for any trust fund shortfalls. (2) 4️⃣ Does Attorney C have any rights against the LPFF? ❌ No. Attorney C can only claim as a concurrent creditor in the bank’s insolvent estate. (1)

Answer 150

Attorneys and trust account advocates must account to clients for their fees and disbursements. If they fail to do so, the Legal Practice Council (LPC) can discipline them. ⚖️🚨 🔹 A common complaint from clients is a lack of transparency in how fees are calculated, leading to confusion about amounts owed. 🤷‍♂️💰

Answer 151

📌 Rule 54.12: Attorneys must provide clients with a written account within a reasonable time after completing or terminating a mandate. 📂 Firms must retain copies of these accounts for at least five years. 🔹 Each account must include: 1️⃣ All amounts received in connection with the matter, with explanations. 💵📄 2️⃣ All disbursements and payments made. 💳🧾 3️⃣ All fees and charges raised, including agreed-upon fees. 💰📝 4️⃣ The amount owing to or by the client. 🔄💼

Answer 152

📤 Any amount due to the client must be paid within a reasonable time after the account is issued. ⏳💵 🔹 Failure to do so could result in disciplinary action by the Legal Practice Council (LPC). 🚨⚖️

Answer 153

📜 Example of a Final Account Rendered to a Client: 🔹 To fees for: 1️⃣ Arranging an appointment and consultation with the client and purchaser. 👥📅 (1) 2️⃣ Perusing the client’s memorandum detailing the transaction. 📄🔍 (1) 3️⃣ Drafting the first version of the contract and sending copies. 🖊📤 (1) 4️⃣ Telephone consultation with the client regarding contract changes. ☎️🔄 (1) 5️⃣ Discussions with the purchaser’s attorney about amendments. 🏛💬 (1) 6️⃣ Preparing the second draft and delivering copies to both parties. 📑📨 (1) 7️⃣ Receiving telephonic instructions to finalize the contract and drafting the final version. 📞📜 (1) 8️⃣ Telephone calls with all parties to arrange the contract signing. 📲✅ (1) 9️⃣ Attending the contract signing. ✍️🏛 (1) 🔟 Handling correspondence, phone calls, postage, and other sundry expenses. 📩📞✉️ (1) 📌 (Note: This is a guideline; attorneys should tailor the account based on actual work performed.) Would you like me to add GIFs for more engagement? 😊

Answer 154

1️⃣ Consult relevant legal authorities, such as Lewis. 📖🔍 (1) 2️⃣ Seek guidance from a senior colleague. 👨‍⚖️📞 (1) 3️⃣ If still uncertain, ask the Legal Practice Council. 🏛❓

Answer 155

1️⃣ First, research legal sources like Lewis. 📚🔍 (1) 2️⃣ Consult a senior colleague for their expertise. 👨‍⚖️📞 (1) 3️⃣ Seek guidance from the Legal Practice Council if still uncertain. 🏛✅ (1)

Answer 156

✅ Yes, an attorney may engage in any lawful business apart from legal practice. 🏛💼 📌 They may: 🔹 Be a sole proprietor, partner, or director of a company. 👨‍💼🏢 🔹 Act as an agent for a business. 🤝 ⛔ However, care must be taken to avoid conflicts of interest with legal practice. ⚖️🚨

Answer 157

✅ Yes! Attorneys can participate in any lawful business alongside their practice. 🏛💻 📌 They may: 🔹 Be a partner, director, or agent in a business. 🏢🤝 🔹 Continue practicing law, provided no conflict of interest arises. ⚖️🚫

Answer 158

1️⃣ No! 🚫 Borrowing from a client creates a conflict of interest unless they are in the business of lending. ⚖️💵 (2) 2️⃣ No! 🚫 Advising a client to lend money to a business you have a stake in is a direct conflict of interest. 🏢❌ (3) 3️⃣ No! 🚫 Attorneys cannot take secret commissions unless they obtain client consent. 🤝💰 (3)

Answer 159

1️⃣ ✅ Yes, unless a conflict of interest arises. However, appointing an independent attorney is advisable. ⚖️👨‍⚖️ (3) 2️⃣ ✅ Yes, but it is not desirable due to potential ethical concerns. 💼🛑 (2) 3️⃣ ✅ Yes, unless negotiations become unfair due to power imbalances. ⚖️💍 (2) 4️⃣ ✅ Yes, but professional courtesy requires informing the colleague before filing the lawsuit. 📜🤝 (3) 5️⃣ ❌ No! Before taking over, the attorney must contact the previous lawyer to ensure the file is properly transferred and costs are settled. ☎️💼 (2) 6️⃣ ✅ Yes, but only if it is in the client’s best interests. 🚨🔏 (3) 7️⃣ ✅ Yes, but if a dispute arises, the attorney must withdraw from representing both parties. 🚫⚖️ (5)