What must a client be advised of in writing if a lawyer engages in a business transaction with them?

When a lawyer engages in a business transaction with a client, it is crucial that the lawyer advises the client in writing to seek separate legal counsel. This requirement is rooted in ethical considerations that aim to protect the client's interests and prevent conflicts of interest that may arise from the dual role of the lawyer as both a legal advisor and a business partner.

The necessity for this advice stems from the fact that the lawyer's interests in the business transaction may not align with the client's interests, which can potentially compromise the lawyer's ability to provide unbiased legal guidance. By urging the client to obtain separate legal counsel, the lawyer ensures that the client receives independent advice regarding the transaction, fostering transparency and protecting the client’s rights.

Other options do not directly address the specific ethical obligation imposed on lawyers when entering into business relationships with clients. For instance, while discussing possible outcomes of a legal case is important in general legal practice, it is not specifically mandated in the context of business transactions with clients.