Legal Opinion | Law&Trust International

What is Legal Opinion? Definition, Form and Structure

Legal opinion is a tool that allows parties obtain a qualified third-party opinion on the subject, object and other issues related to the conclusion of the transaction. It is a document drawn up by a competent lawyer on any specific question or problem.

Before entering into any commercial transaction, the parties should carefully consider the nature and volume of the transaction, as well as legal issues related to it.

Why do you need a legal opinion

Legal opinion is a tool that allows parties to a transaction obtain a qualified third-party opinion on the subject, object and other issues related to the conclusion of the transaction. At its core, it is a document drawn up by a competent lawyer on a specific issue or problem.

Drafting Legal Opinion

First of all, the one who gives a legal opinion should consider whether drafting and provision of a legal conclusion does not create a situation for a conflict of interest with already existing clients.

Moreover, it is necessary to take into account that when drawing up a legal opinion on absolutely any issues, lawyers are responsible for their opinion, as they conduct legal and factual research, analysis and verification.

It is for this reason that the provision of a legal opinion is an expensive process, nevertheless, the price of a legal opinion depends on the question raised and input data.

It is important to note that if the customer's activity being investigated is considered illegal, it is impossible to obtain a positive legal opinion in response to the question posed. It should be noted that no self-respecting law firm will risk its authority and draw up a legal opinion on the legality of activity performed, if the activity being investigated is illegal.

As a rule, a legal expert's opinion should be drawn up by a specialist who is knowledgeable in that particular area of law and not provided by the law of that foreign state with which the lawyer is not familiar.

Preparation of a legal opinion is necessary in the following cases:

For Banking
For Banking Confirmation of the legal status of carried out activities and absence of contradictions to the laws of the process-participating countries.
For Payment Institution
For Payment Institution Confirmation of the legal status of activities for the transfer of funds to/from accounts of the customer and authorized persons.
For Visa / MasterCard
For Visa / MasterCard Confirmation of the legitimate activity of the processive/merchant agent for making money transfers to or from the customer’s accounts.
For an Investment Company
For an Investment Company Confirmation of legality for submitting applications for obtaining a license for participants in the securities market (investment funds, forex brokers, depositories).
In Securities Matters
In Securities Matters Confirmation for the company that issue securities due to requirements of the regulator and local legislation.
For Cryptocurrency Transactions
For Cryptocurrency Transactions Requirements needed in order to confirm/deny the classification of the token as security for regulatory authorities.
For Real Estate
For Real Estate Approval of legal status for ownership of real estate, as well as the protection from additional financial and tax obligations.
For Inheritage Issues
For Inheritage Issues Approval of the procedure for transfer of property from the deceased to his heirs, certification of the legal strategy for the distribution of property.
For Tax Issues
For Tax Issues Allows determination of the financial burden, types of mandatory taxes, as well as their terms of payment.
In Intellectual Property Matters
In Intellectual Property Matters Protection of the right to use the object through patenting/creating a TM, increasing the financial and corporate value of use.
For Various Deals
For Various Deals Checking the legality of transactions with companies (their shares), financial and tax position of the participants, the terms and conditions of the transactions.
For ICO
For ICO Verification of the supplier-eminent digital assets for the initial distribution of tokens (ICO) on public platforms.

Form and content of Legal Opinion

The law does not establish any specific form a lawyer must adhere to when he prepares a full legal opinion. However, in order to give a legal opinion in a convenient format, you need to adhere to a certain form developed over centuries, that involved the practice of drawing up legal opinions by lawyers from different countries around the globe.

The structure of the Legal Opinion is:

  1. Information about the customer, information about whom the conclusion is addressed, information about the compiler, information about the task that has been supplied to the compiler. As a rule, a legal expert opinion is intended for any side of the transaction and is devoted to a specific issue, for example: “Company A appealed to Law and Trust International lawyers on the legality of acquiring a 30% stake in Corporation B with the potential legal and tax risks, which such a deal might carry. In some cases, it is also assumed that the legal opinion will be used by persons other than those specified. As an example, a legal opinion addressed to the underwriter regarding the legality of the proposed issue of shares or bonds, upon which the issuer’s transfer agent (transfer agent) must also rely;
  2. A general statement of the examined documents or other factual or legal issues that were considered by the compiler in the process of drawing up a legal opinion, as well as information on the various allowed reservations. Such reservations differ depending on the nature of the request for the opinion of a lawyer.
  3. The legal opinion of a lawyer includes the study of facts, interpretation of those facts about their legality or potential risks. The compiler of legal opinion should clearly and in details examine a sufficient number of facts confirming each of the conclusions set forth in the legal opinion.
  4. Conclusion of the compiler based on the study. In most cases, the findings of legal opinion can be backed up by copies of documents examined, which the lawyer (the drafter) of the opinion rendered;
  5. The date and signature of the drafter. Most times, legal opinion is signed on behalf of the company with the specifications of the person who made the report. Moreover, legislation including corporate, banking and tax legislation may change and with this, the stated conclusion may change.

Conclusion

The qualitative conclusion of a law firm is distinguished by clarity of language, certainty of initial circumstances, soundness (with reference to legislation), and the presence of clear conclusions. Preparation of a written legal opinion and analytical reports is an integral part of the practice of a law firm.

The advantages of our legal expertise

Lawyers of Law and Trust provide free initial advice, as well as services for analyzing and developing a legal position on the issue you have raised and further develops a legal opinion.
Since the preparation of legal opinions requires a certain level of competence, we recommend that you contact Law & Trust specialists for its preparation. By ordering our preparation of a legal opinion, you will receive a full opinion from an expert in the relevant field of law.
We draw up legal opinions in English and other languages, with both well-written and oral advice on foreign law.

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