Undertaking C: Conflict of Interest Loading

As in previous years, the professional indemnity insurance premium is subject to a “Conflict of Interest” loading to be payable by a Law Practice unless a written undertaking is given by a principal on the firm’s behalf. Each principal should carefully read the undertaking below.

Undertaking

I undertake on my behalf and on behalf of all members of the law practice that no person indemnified under the Certificate of Insurance will, in the 12 months commencing 1 July 2022:

  1. act in any transaction, or in any series of transactions related to each other, for any two or more parties who are opposite parties in any such transaction, or
  2. provide to the lender named in any instrument securing or guaranteeing repayment of a loan, a certificate that the terms and effect of the instrument have been explained to the borrower and/or guarantor.

For the purposes of this undertaking “opposite parties” includes:

  1. vendor and purchaser pursuant to a contract of sale of land, or transferor and transferee of land, for value at arm’s length
  2. vendor and purchaser of a business at arm’s length
  3. lessor and lessee pursuant to a lease or agreement for lease
  4. financier and borrower in connection with a loan of money or agreement to lend
  5. purchaser of land and lender of money, or provider of finance, to be secured by mortgage

Provided always that nothing in this undertaking will prevent a member of the Law Practice from acting for:

  1. two or more executors of a deceased estate (provided their interests are the same)
  2. two or more trustees of a trust together (provided their interests are the same)
  3. persons who are married or engaged in a significant relationship together, in the sale or purchase of any property, giving or discharge of any mortgage, or lease or agreement for lease of any property
  4. clients making mutual wills

IMPORTANT: The submission of your firm renewal application will constitute the giving of this undertaking if applicable.