In law, a legal opinion in some jurisdictions is a written statement from a judge or group of judges that is attached to an order or judgment in a case setting out the reasons and legal principles for the judgment. Lawyers regularly provide opinions on a variety of topics, and legal opinions are an integral part of many large transactions. In all cases, the lawyer concerned is expected to provide an opinion that is both legally correct and not misleading to the recipient. The purpose of preparing the legal opinion is twofold: at Simcocks, we have a dedicated team that handles legal opinions on a daily basis. Our clients include public and private companies, financial institutions and other regulated entities, public institutions, partnerships and individuals. We have processed thousands of reviews, from simple cases to more complex transactions. Our lawyers are regularly engaged by law firms/lawyers from other jurisdictions or directly by clients. We are often the first port of call for many financial institutions, both locally and internationally, and our knowledge and experience allow us to advise them in all areas of their business. In general, lawyers are careful not to frame the opinions they express in a way that triggers strict liability, although parties seeking the lawyer`s advice expect the lawyer to be liable if he acts negligently. Words that imply a standard of care beyond ordinary negligence, such as „I certify that.” should be avoided in legal advice. However, it is important to remember that a lawyer`s opinion is only an opinion – not a guarantee.
The level of due diligence required to prepare a legal opinion is often the same, regardless of the size of the transaction. If the amount of the transaction does not warrant an expensive notice, the attorney may contact the opposing attorney to discuss whether certain issues such as proper authorization, execution, and delivery of documentation can be accepted to reduce costs for the client. Because a security right in investment property made effective against third parties by registration is subordinated to a security right made effective against third parties by control, a secured party generally requires legal counsel of the debtor to give notice to the secured party that the security right has been made effective against third parties by both control and registration, and that it is „customary to seek notice and make an opinion that, with control, guarantee The party takes precedence over all other security interests of the Company over investment companies in the same investment property, despite the scarcity of priority valuations for other forms of guarantee. In the United Kingdom and other common law countries, a legal opinion also refers to written legal advice on a point of law issued either by a lawyer or solicitor (often referred to as a „lawyer`s opinion”) or, occasionally, by a senior judicial officer, such as an Attorney General. If the opinion is given by a foreign lawyer or law firm, it is generally referred to as „foreign legal advice”. If a transaction has an Isle of Man entity/structure (e.g. involves an Isle of Man company, partnership or trust), legal advice may be sought, for example, from a bank/lender or counterparty to the transaction in relation to Isle of Man law in order to confirm, inter alia, that the Isle of Man company is properly incorporated and validly exists and that the documents entered into by the Isle of Man entity were correct. executed are binding and enforceable. Legal advice is often obtained in connection with credit and securities transactions, real estate purchase transactions and share purchases and purchases. In addition, specific opinions may be issued as agreed by Guernsey Counsel as part of market practice for a particular type of transaction, such as how an investor is registered in connection with a fund closure. A fairly recent study by the ABA`s Business Law Section on private mergers and acquisitions in Canada shows a sharp decline in the number of legal opinions on such transactions.
The study, which covered 64 transactions ranging from $5 million to $100 million from January 2010 to December 2011, showed that the percentage of transactions requiring legal advice from the target company`s lawyers increased from 72% in 2008 to 55% in 2011. The decline in the comparable study for U.S. transactions was even more pronounced, from 58% in 2009 to 27% in 2011. The reason for this decline is that commonly expressed points, such as the existence and status of the target company at closing, proper approval and delivery of transaction documents and the like, are issues that can often be fulfilled through due diligence. As due diligence becomes more robust and electronic search becomes more efficient, the need to rely on legal advice decreases. MPS legislation has been enacted in all common law countries in Canada to replace almost all other legislation dealing with the assumption of security in personal property. PPSA has a wide application and allows the creation of many types of security rights. Three main elements need to be considered in order to provide a personal property security assessment, namely: From a Guernsey-specific perspective, valuations are typically requested by Guernsey lawyers when an element/aspect of the business has a connection to Guernsey. Usually, this is because companies registered in Guernsey are parties to the transaction (i.e.
they will enter into contractual obligations usually through contracts subject to the laws of another jurisdiction), for example as borrower, guarantor, buyer, seller, investor, etc.