What is necessary for a lawyer to conduct a business transaction with a client?

For a lawyer to conduct a business transaction with a client, it is essential that the terms of the transaction be fair and reasonable, and that the client understands those terms. This requirement is rooted in the principles of maintaining a fiduciary relationship between the lawyer and client. Lawyers have a duty to act in the best interest of their clients, and engaging in business transactions can create conflicts of interest and ethical dilemmas.

By ensuring that the terms are fair and that the client comprehensively understands them, the lawyer helps protect the client’s interests and fosters transparency. This understanding should ideally be achieved through clear communication regarding the nature of the transaction, potential risks, and any implications for the client.

When considering the other options, verbal consent alone may not provide the necessary clarity or documentation to protect both parties involved. A mere letter without proper understanding of the terms would not sufficiently safeguard the client's interests either. Lastly, while both written and verbal consent might seem comprehensive, the emphasis lies more on the fairness of the terms and the client’s understanding compared to the method of obtaining consent.