Under which condition are business transactions with clients permitted?

Business transactions with clients are permitted when they are fully disclosed, the client provides informed consent, and the client is given the opportunity to seek independent counsel. This requirement is in place to ensure that the client fully understands the implications of the transaction and that their interests are protected, which is critical to maintaining the integrity of the attorney-client relationship.

Informed consent means that the client must be aware of all relevant details, including potential risks and conflicts of interest inherent in the transaction. The opportunity to seek independent counsel ensures that clients can obtain advice separate from their attorney, which helps safeguard against any potential abuse of power or influence the lawyer may have.

This framework is crucial in promoting transparency and fairness in client-lawyer transactions, ultimately fostering a relationship built on trust and ethical conduct. Other options do not provide the necessary safeguards for client protection or fail to meet these ethical standards. For instance, handling a transaction with no client knowledge would violate ethical obligations of disclosure, while reviewing transactions solely by a court does not ensure the necessary informed consent by the client.