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October 19, 2022

Lawyer has represented Client for years on many business deals

Lawyer has represented Client for years on many business deals. Now, Client has a wonderful business opportunity and wants Lawyer to invest and become a partner in the new business. May Lawyer enter into a contract with Client?

a) No, because the fiduciary relationship between a lawyer and client creates undue influence.

b) Yes, but only if Lawyer makes full disclosure of all possible conflicts to Client, and takes the necessary steps, consistent with the Lawyer’s rules of ethics, to make sure the contract is fair to Client.

c) No, because such a contract is presumed to be unconscionable.

d) Yes, because the contract was Client’s idea. Therefore, Lawyer does not have a fiduciary relationship with Client on this contract and so it is acceptable for Lawyer to enter into this contract with Client without taking any further steps.

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