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James should advise his client only on legal issues

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Question

James is acting for Chikens Pty Limited ('Chikenl') in the purchase of a chicken farm. The purchase price has been calculated based on an assumption that the profits will remain unchanged for the next 5 years. James's retainer is to advise on the contract terms.

Which is the most correct answer to this?

1. James should advise his client only on legal issues, which does not include price. James should advise his client that he is confining his advice to legal issues.

2. James should advise his client to pay less due to the risk that the law will change in a way that makes it more difficult for chicken farm to earn the same profits.

Reference no: EM133539212

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