What is a key requirement when a lawyer has business transactions with a client?

A key requirement when a lawyer has business transactions with a client is to provide full disclosure to the client in writing. This principle is rooted in the ethical obligation of lawyers to avoid conflicts of interest and ensure that their clients are fully informed about the risks and implications of entering into such transactions.

When a lawyer engages in a business transaction with a client, it is crucial that the lawyer communicates all relevant information regarding the transaction, including any potential conflicts of interest, the terms of the deal, and the impacts on the attorney-client relationship. This written disclosure allows the client to make an informed decision and protects both parties by establishing clear terms and expectations.

Clients must have the opportunity to understand how the transaction may affect their interests and should be made aware of the potential risks involved. This requirement fosters transparency and upholds the trust that is essential in the attorney-client relationship, ensuring that clients are not placed at a disadvantage due to hidden interests or potential conflicts.