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CS Professional · Drafting, Pleadings and Appearances · Art of Opinion Writing

Anand Pharma Ltd, a public company, asks whether it can give a loan to a firm in which a director is a partner. The opinion must address a restricted transaction. Which structure of reasoning best reflects a sound opinion?

A sound opinion identifies the issue, sets out the applicable provision, applies it to the facts including any exemptions or approvals required, and ends with a qualified conclusion. Client preference or past board practice cannot replace statutory analysis.

  1. AIssue, applicable statutory provision, application to the facts including exemptions and approvals needed, conclusion with qualificationsCorrect
  2. BConclusion, then the client's preference, then the provision
  3. COnly the case law, without the statute
  4. DOnly the board's past practice on loans

Explanation

A sound opinion follows issue, law, application and conclusion, and examines exceptions and approvals relevant to the transaction. Starting from client preference or past practice is not legal reasoning, and ignoring the statute makes the opinion incomplete.

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