Ethics & Professional Conduct In Business Law & Practice Flashcards
When are undertakings likely in BLP?
- Handing over documents on completion
- Discharging charges
- Procure registration of charge at CH
What are the two conflicts?
- Own interest conflict
- Conflict of Interests
What are the exceptions to an own client conflict?
There are no exceptions
Can a solicitor act for two clients on acquisition of property being disposed of through liquidation?
Yes as they are competing for the same objective (exception)
Can a solicitor act for property being acquired through and auction or tender process?
Yes under the same objectives exception
Can a solicitor act for partners setting up a business?
Yes under the substantial common interest exception
PROVIDED KEY TERMS ARE MET
Management/shareholdings/finance
If a conflict arises when starting up a business what should a solicitor do?
Cease to act for both because the solicitor will possess confidential info which would require disclosure.
What is a transaction at arms length?
Where both parties are not connected and are each acting in their own commercial interest.
Can you act for buyer & seller?
Yes but although no prohibition it is rare
Do the two exceptions apply to buyer & seller?
Substantially common interest
Competing for the same objective
No they do not apply
Can a solicitor act for both buyers?
Usually yes as they have the same object
Can a solicitor act for a buyer and lender?
In straightforward residential transactions yes but not usually in commercial lending.
In BLP it’s usual to act regarding loan finance, what is usually negotiated?
The loan facility letter
Limited retainers can be used when?
To act for both parties on limited parts of their instructions.
In cases of acting for guarantors will there almost always be a conflict?
Yes
What does the law society guidance regarding conveyancing say?
Can act for buyer and lender if it’s just a residential mortgage on standard terms.
What are the etridge guidelines?
Case law on security where a party is not directly involved.
I.e. husband and wife own a property and which is being used to secure business borrowing where only the husband is a director/sole trader.
To rely on common objectives or substantially common objective what 3 conditions need satisfying?
All consented
Safeguards
Reasonable to act for all
