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QUESTION TWO Dilruk is a graduate solicitor working a large CBD law firm. After being in the job for only 6 months, Dilruk's diligence and personability have already made a good impression on his managing partner, and his future in the law looks bright. Around this time, Dilruk's parents decide they wish to retire to Ocean Grove, and sell their house in Glen Waverley to their daughter (Dilruk's sister) and her husband. On investigating their options for a solicitor (or two solicitors) to handle the transaction, they find the estimated fees to be higher than they expected. They are particularly concerned to avoid such fees for their daughter, who can only barely afford the minimum deposit required by her bank towards the loan used to purchase the Glen Waverley property. Dilruk's father calls him and explains the situation, then goes on to say: 'We need you to help us out here son - please handle the legal side of the house sale. When Dilruk expresses some disquiet at the potential implications for his career if anything goes wrong, his father responds: 'We put you through law school son, and we had to make sacrifices for that. It's time for you to step up for your family.' Dilruk feels compelled to agree. Over Friday night drinks, Dilruk mentions his predicament to another graduate in his firm. The other graduate says 'Ouch! I wouldn't like to be in your shoes mate. If I were you, I would keep the conveyancing work strictly off the books if you value your career at the firm. Dilruk is unsure about this advice, and seeks your counsel. REQUIRED: a) Advise Dilruk what the recommended approach to, acting for friends and family members is. Explain why this is the recommended approach citing relevant case law, legislation, professional conduct rules and any relevant guidance material.

QUESTION TWO Dilruk is a graduate solicitor working a large CBD law firm. After being in the job for only 6 months, Dilruk's diligence and personability have already made a good impression on his managing partner, and his future in the law looks bright. Around this time, Dilruk's parents decide they wish to retire to Ocean Grove, and sell their house in Glen Waverley to their daughter (Dilruk's sister) and her husband. On investigating their options for a solicitor (or two solicitors) to handle the transaction, they find the estimated fees to be higher than they expected. They are particularly concerned to avoid such fees for their daughter, who can only barely afford the minimum deposit required by her bank towards the loan used to purchase the Glen Waverley property. Dilruk's father calls him and explains the situation, then goes on to say: 'We need you to help us out here son - please handle the legal side of the house sale. When Dilruk expresses some disquiet at the potential implications for his career if anything goes wrong, his father responds: 'We put you through law school son, and we had to make sacrifices for that. It's time for you to step up for your family.' Dilruk feels compelled to agree. Over Friday night drinks, Dilruk mentions his predicament to another graduate in his firm. The other graduate says 'Ouch! I wouldn't like to be in your shoes mate. If I were you, I would keep the conveyancing work strictly off the books if you value your career at the firm. Dilruk is unsure about this advice, and seeks your counsel. REQUIRED: a) Advise Dilruk what the recommended approach to, acting for friends and family members is. Explain why this is the recommended approach citing relevant case law, legislation, professional conduct rules and any relevant guidance material.

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QUESTION TWO Dilruk is a graduate solicitor working a large CBD law firm. After being in the job for only 6 months, Dilruk's diligence and personability have already made a good impression on his managing partner, and his future in the law looks bright. Around this time, Dilruk's parents decide they wish to retire to Ocean Grove, and sell their house in Glen Waverley to their daughter (Dilruk's sister) and her husband. On investigating their options for a solicitor (or two solicitors) to handle the transaction, they find the estimated fees to be higher than they expected. They are particularly concerned to avoid such fees for their daughter, who can only barely afford the minimum deposit required by her bank towards the loan used to purchase the Glen Waverley property. Dilruk's father calls him and explains the situation, then goes on to say: 'We need you to help us out here son - please handle the legal side of the house sale. When Dilruk expresses some disquiet at the potential implications for his career if anything goes wrong, his father responds: 'We put you through law school son, and we had to make sacrifices for that. It's time for you to step up for your family.' Dilruk feels compelled to agree. Over Friday night drinks, Dilruk mentions his predicament to another graduate in his firm. The other graduate says 'Ouch! I wouldn't like to be in your shoes mate. If I were you, I would keep the conveyancing work strictly off the books if you value your career at the firm. Dilruk is unsure about this advice, and seeks your counsel. REQUIRED: a) Advise Dilruk what the recommended approach to, acting for friends and family members is. Explain why this is the recommended approach citing relevant case law, legislation, professional conduct rules and any relevant guidance material.
Transcribed Image Text:QUESTION TWO Dilruk is a graduate solicitor working a large CBD law firm. After being in the job for only 6 months, Dilruk's diligence and personability have already made a good impression on his managing partner, and his future in the law looks bright. Around this time, Dilruk's parents decide they wish to retire to Ocean Grove, and sell their house in Glen Waverley to their daughter (Dilruk's sister) and her husband. On investigating their options for a solicitor (or two solicitors) to handle the transaction, they find the estimated fees to be higher than they expected. They are particularly concerned to avoid such fees for their daughter, who can only barely afford the minimum deposit required by her bank towards the loan used to purchase the Glen Waverley property. Dilruk's father calls him and explains the situation, then goes on to say: 'We need you to help us out here son - please handle the legal side of the house sale. When Dilruk expresses some disquiet at the potential implications for his career if anything goes wrong, his father responds: 'We put you through law school son, and we had to make sacrifices for that. It's time for you to step up for your family.' Dilruk feels compelled to agree. Over Friday night drinks, Dilruk mentions his predicament to another graduate in his firm. The other graduate says 'Ouch! I wouldn't like to be in your shoes mate. If I were you, I would keep the conveyancing work strictly off the books if you value your career at the firm. Dilruk is unsure about this advice, and seeks your counsel. REQUIRED: a) Advise Dilruk what the recommended approach to, acting for friends and family members is. Explain why this is the recommended approach citing relevant case law, legislation, professional conduct rules and any relevant guidance material.
QUESTION TWO CONTINUED Any advice to the contrary notwithstanding, assume Dilruk feels compelled to represent his family members in the sale transaction. He decides to conduct the conveyancing work for the sale of the Glen Waverley property without the knowledge of his managing partner, or any written retainer. Subsequently, it emerges that Dilruk made an error when compiling the Vendor's Statement required under the Sale of Land Act 1962 (Vic). This error makes the contract voidable by the purchaser at any time until settlement. As a result, the bank will not allow Dilruk's parents to rely on money owing to them under the contract to secure a loan to purchase their retirement property in Ocean Grove. Dilruk's father is disappointed, and says that it is his ethical duty to inform the Legal Services Commissioner about the situation. b) In light of these further facts, advise Dilruk as to the potential consequences of his actions under the Legal Profession Uniform Law and any other relevant sources of liability. NB There is no need to address the potential consequences arising from property and contract law.
Transcribed Image Text:QUESTION TWO CONTINUED Any advice to the contrary notwithstanding, assume Dilruk feels compelled to represent his family members in the sale transaction. He decides to conduct the conveyancing work for the sale of the Glen Waverley property without the knowledge of his managing partner, or any written retainer. Subsequently, it emerges that Dilruk made an error when compiling the Vendor's Statement required under the Sale of Land Act 1962 (Vic). This error makes the contract voidable by the purchaser at any time until settlement. As a result, the bank will not allow Dilruk's parents to rely on money owing to them under the contract to secure a loan to purchase their retirement property in Ocean Grove. Dilruk's father is disappointed, and says that it is his ethical duty to inform the Legal Services Commissioner about the situation. b) In light of these further facts, advise Dilruk as to the potential consequences of his actions under the Legal Profession Uniform Law and any other relevant sources of liability. NB There is no need to address the potential consequences arising from property and contract law.
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