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

Arjun Steels Ltd receives an opinion from its professional that a proposed buyback complies with the law. The board later decides to proceed differently, ignoring the advice. Which statement about the nature of the opinion is correct?

The opinion is advisory. The client may accept or reject it because it carries no binding force like an order or judgment, and it needs no Tribunal approval. The professional's duty is to give sound, reasoned advice; the decision stays with the board.

  1. AThe opinion is advisory, so the client is free to accept or reject itCorrect
  2. BThe opinion binds the board and ignoring it is an offence
  3. CThe opinion becomes an order once the board receives it
  4. DThe opinion must be approved by the Tribunal before it is effective

Explanation

A legal opinion only advises. The decision remains with the client, who bears responsibility for acting or not acting. It has no force of an order and needs no Tribunal approval.

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