PC issues

Question 1

Under what conditions can one act for someone despite a conflict of interest?

Answer 1

When clients have a substantially common interest or

are competing for the same objective.

Question 2

What is an example of clients competing for the same objective?

Answer 2

Competition tender or auction.

Question 3

What is required for clients to proceed despite a conflict of interest?

Answer 3

All clients must give written consent to acting.

Question 4

What must be established to manage potential conflicts of interest?

Answer 4

Appropriate safeguards.

Question 5

What must one be satisfied with to act for multiple clients in conflict?

Answer 5

It must be reasonable to work with both clients.

Question 6

example of substantially common interest

Answer 6

two people joining the property as joint tenant
resi lender and buyer

NOT tenancy in common - different interests/shares, commercial buyer and lender

Question 7

duty of disclosure

Answer 7

‘make the client aware of all information material to the matter of which you have knowledge’

• Does not extend to information others in the firm may be aware of

Question 8

Duty of discloure - exceptions:

Answer 8

• The client gives informed consent, given in writing to the information not being disclosed
• Risk of serious injury
• Info is from a privileged document that has been mistakenly exposed