Client Transaction Essay

851 Words4 Pages
Dave Deedan has recently gained majority ownership to Shoe Leonard’s when previous business owner passed away. Dave retains Andrew Haynus to draft a will for him. Before Haynus is finished drafting the will he thinks of a great way to help Shoe Leonard’s make even more money. Haynus decides he is going to present Dave with a deal and offer $50,000.00 and would like some say in the decision making process of the business. Haynus also remembers while he is there doing the work he needs a new pair of loafers, so he plans on buying a new pair of shoes also. Haynus practices in a state that has adopted the Model Rule 1.8. How does this rule apply to the two business transactions Haynus wants to enter in with his client? Entering into…show more content…
The requirements of Prof. Cond. R. 1.8(a) must be met even when the transaction is not closely related to the subject matter of the representation, as when a lawyer drafting a will for a client learns that the client needs money for unrelated expenses and offers to make a loan to the client. The Rule applies to lawyers engaged in the sale of goods or services related to the practice of law, for example, the sale of title insurance or investment services to existing clients of the lawyer's legal practice. It also applies to lawyers purchasing property from estates they represent Prof. Cond. R. 1.8(a) does not apply to standard commercial transactions between the lawyer and the client for products or services that the client generally markets to others, for example, banking or brokerage services, medical services, products manufactured or distributed by the client, and utilities' services. In such transactions, the lawyer has no advantage in dealing with the client, and the restrictions in paragraph (a) are unnecessary and impracticable In order for Haynus to enter into a business transaction with a client and ensure that the representation will not be compromised in any way. Haynus must present the idea of the business plan in writing to his client; he has to make sure the terms are reasonable and fair. The factors to be considered in determining reasonable and fair we need
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