Guidance
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Conflict of Interest Generally It is a well established principle that solicitors should not act for clients where there is a conflict of interest between them. This is codified in rule B2.1.2 which states that "You shall not act for two or more parties whose interests conflict."
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The Society believes that a definition of a commercial security transaction is helpful: "A commercial security transaction relates to the secured lending to a customer of a bank or other lending institution where the purpose of the loan is clearly for the customer's business purposes".
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Where there is a combination of solicitor and non-solicitor executors, a solicitor executor should not use his power as executor to secure the continuity of his acting as solicitor in the winding up of the estate.
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From time to time the Law Society is asked to provide guidance to solicitors who have been asked to act as a director of a company which is also a client of the practice unit (and also where a company of which the solicitor is a director becomes a client of the practice unit).
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After extensive discussion and consideration the view of the Society is that in general there is a clear conflict and the same solicitor should not advise both parties in relation to preparation of a cohabitation agreement
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Guidance on conflict of interest issues in relation to guarantees.
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Rule B2.2 is a restatement of The Solicitors (Scotland) (Drafting Wills) Practice Rules 2010 ("the 2010 Rules") with one amendment (the addition of the word "knowingly" before the word "act" in rule B2.2.2, added for clarity and consistency with B2.2.3).