Jack and Jill recently agreed to sell their business to Evergreen Solutions Inc.Evergreen's lawyer suggested he can represent both Jack and Jill and Evergreen to reduce the legal cost of the deal.Which of the following correctly identifies the position the lawyer would be in if he acts as counsel for both business parties in this transaction?

Question

Quizplus · Accepted Answer

If the lawyer represents both Jack and Jill and Evergreen in the same transaction, they will be in a conflict of interest. This means that the lawyer may prioritize the interests of one party over the other, failing to give unbiased advice and representation. It could also put the lawyer in a position where they have access to confidential information that they could use to benefit one party over the other, which would be a breach of ethics. Therefore, it is not a recommended practice for a lawyer to represent both parties in the same transaction.

Jack and Jill Recently Agreed to Sell Their Business to Evergreen