LAW OFFICE MANAGEMENT Flashcards
Why do lawyers establish Law offices?
- Necessity
- Desire to be independent
- In compliance with RPC-rule 22
- Profitability
- To achieve dreams
- Realization of an ambition
Qualities of a lawyer who intend to establish law offices?
- Honesty & Integrity
- Hardwork & determination
- Confidentiality
- Organization and perseverance
- Commitment
For a lawyer to succeed, he must have?
- Hardwork
- Skills
- Goodluck
- Values
- Experience
- Dynamism and innovation
Types of law firm?
- Sole Practitionership
- Sole Proprietorship
- Associateship
- Partnership
What is Sole Practitionership?
This is a unit of practice involving a practitioner practicing alone, but he employs support staff such as; secretary, clerk, dispatch clerk, office assistant etc. to assist him.
Advantages of Sole Practitionership?
- Flexibility
- Quick decision making
- Enjoys profit alone
- Less stringent requirements
- He enjoys privacy & confidentiality
- No friction with other members
Disadvantages of sole practitonership?
- No room for expertise
- Slow work output
- Considers the brief alone
- Death extinguishes practice
- He bears the risk and losses alone
- Client satisfaction is usually low
- Problem of attracting client.
What is Sole Proprietorship?
This is a unit of practice involving a legal practitioner who establishes a law firm, works there and employs other legal practitioners to work in the firm.
He takes the decisions alone
The lawyers are fee earners & it is a basic contractual relationship
Advantages of Sole PROPRIETORSHIP?
- He is entitled to all his profits but has to pay salaries
- It allows for expertise
- Takes credit for success of the firm
- Can specialize in any area of his choice
- Enjoyment from home as he has no boss.
- There is division of labour between him and the other legal practitioners
- It creates employment
Disadvantages of sole proprietorship?
- Slow decision making
- Bears the risk alone
- Conflicting opinions may arise
- Problem attracting clients
- Low quality decisions(since it is made by the sole proprietor alone)
- Difficulty in raising capital
What is Associateship?
This is a unit of practice whereby two or more practitioners come together to contribute the capital to provide facilities required for a law firm.
They maintain individual practice but each remain a sole proprietor however.
Advantages of Associateship?
- Low capital needed
- Easier to set up
- There is room for expertise due to the presence of other associates
- Enhances a well furnished office
- Not professionally isolated
- No sharing of profits
Disadvantages of associateship?
- Client poaching
- Distrust of one another
- Conflict of interests
- Rivalry amongst associates
- Bears the risks and losses alone
What is partnership?
This is a unit of practice where two or more legal practitioners wishing to establish a law
firm contribute capital to form a partnership.
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Advantages of partnership?
- Sharing of financial responsibility
- No professional isolation
- High quality decisions
- Sharing of profits and losses
- Room for specialization
- Easier to get clients because of professional competence of more people involved
- More time for relaxation
- Easier to raise capital to set up.
- Division of labour
- Possibility of having a well-equipped law firm
Disadvantages of Partnership?
- Joint Liability UNITED BANK OF KUWAIT v HAMMOND
- Fraudulent act of one partner may taint the reputation of other partners
- There may be mistrust among the partners which may hamper the success of the firm
- Slow decision making
- Double loyalty
Disadvantages of partnerships?
- Liability- UNITED BANK OF KUWAIT v HAMMOND
- Fraudulent act of one partner may taint the reputation of other partners
- There may be mistrust among the partners which may hamper the success of the firm
- Slow decision making
- Double loyalty
What is business plan?
• A business plan is a document containing information about a proposed firm, its goals and the financial projections for it
Contents of a business plan?
- Name(s) of the practitioner
- Name of the firm
- Business Address
- Business Start date
- Type of firm
- Goals of the firm
- Segmentation of the market
- Market competitors
- Capital requirement
- Borrowing requirement
- Security to be provided
- Use of funds