What must occur for a lawyer to enter into a business transaction with a client?

For a lawyer to enter into a business transaction with a client, it is essential that the transaction is disclosed in writing and that the client gives informed consent. This is rooted in the Model Rules of Professional Conduct, specifically Rule 1.8, which addresses conflicts of interest.

The requirement for disclosure ensures transparency and that the client understands the nature and implications of the transaction. Informed consent means that the client is aware of the risks and benefits involved, and consents to the transaction without any coercion. This process protects the client’s interests and upholds the integrity of the attorney-client relationship.

This requirement serves to prevent any potential ethical issues or conflicts of interest that may arise from the lawyer's dual role as both legal representative and business partner. Thus, the framework of having clear, written disclosure and obtaining informed consent is crucial for maintaining professional standards and ensuring that the client is fully protected in any business dealings with their lawyer.