B2.1: Conflict of Interest Generally

Conflict of Interest Generally It is a well established principle that solicitors should not act for clients where there is a conflict of interest between them. This is codified in rule B2.1.2 which states that "You shall not act for two or more parties whose interests conflict."

B2.1: Conflict of Interest in Commercial Securities

The Society believes that a definition of a commercial security transaction is helpful: "A commercial security transaction relates to the secured lending to a customer of a bank or other lending institution where the purpose of the loan is clearly for the customer's business purposes".

B2.1: Mandates in Executries

Where there is a combination of solicitor and non-solicitor executors, a solicitor executor should not use his power as executor to secure the continuity of his acting as solicitor in the winding up of the estate.

B2.1: Acting as Director of Client Company

From time to time the Law Society is asked to provide guidance to solicitors who have been asked to act as a director of a company which is also a client of the practice unit (and also where a company of which the solicitor is a director becomes a client of the practice unit).

B2.1: Pre-nuptial, Cohabitation and Separation Agreements

After extensive discussion and consideration the view of the Society is that in general there is a clear conflict and the same solicitor should not advise both parties in relation to preparation of a cohabitation agreement

B2.1: Conflict of interest guidance on corporate guarantees sought by banks

Guidance not to accept banks' instructions in relation to guarantees sought from client companies where overly onerous requirements are placed on solicitors.

B2.2: Drafting Wills

Rule B2.2 is a restatement of The Solicitors (Scotland) (Drafting Wills) Practice Rules 2010 ("the 2010 Rules") with one amendment (the addition of the word "knowingly" before the word "act" in rule B2.2.2, added for clarity and consistency with B2.2.3).