In many cases, legal opinion is part of deals performed by the banking institution. However, very often the participants in the operation do not pay due attention to the importance of this aspect. Below, we will try to consider in detail what concept nature of legal opinion in Canada is, when it’s mandatory to obtain it, etc.
Such opinion is professional conclusion expressed in writing. This document is provided by juridical organization and contains lawyers’ outcomes regarding proposed deal, its analysis, so on. Having received an opinion, the client relies on the opinion expressed in it, using is as grounds for a future deal.
Legal opinion is frequently needed when performing cross-border deal – obtaining this document is an essential condition for agreement. What should be taken into account, the conclusion must be obtained before paying the advance. The purpose of this document is to convince client of following: documents engaged in deal firmly bind its participants; each document being part of cooperation is endowed with coercive powers in relation to deal participants.
Mostly, legal opinion is necessary when carrying out cross-border deals, particularly, those related to the purchase of organizations, the issuance of credit funds, securities, the purchase and sale of real estate and others.
For example, if one of the participants in deal is organization established in Canadian jurisdiction, legal opinion is demanded for confirming person’s reliability and provide guarantees for its proper functioning.
Recipient of Canadian legal opinion is informed about juridical influences arising after deal conclusion. Particularly, lawyers may give client information as to whether a particular document has force within this state.
Legal opinion determines legal nature issues and possible risk imposed on receiver and must be solved before deal conclusion. In particular, this applies to the execution of documentation necessary for deal, forms of administrative protection and other things.
Through this conclusion, participant’s possibility to fully accept and fulfill responsibilities that are imposed on him/her as a deal party will be confirmed.