Reference no: EM132992428

Problem 1: By adhering to the Rules and requirements, it ensures that there is no deficit in the trust bank account, which prevents the obligations towards the business creditors from being met.

True

False

Problem 2: Fees and other charges levied or raised against the client and in instances where a fee has been agreed upon, the fact that it was agreed upon and the amount should appear on the account statement of every client of the attorney's practice.

True

False

Problem 3: Funds may be transferred from the business bank account to the trust bank account if a payment is due to the instructed attorney in respect of correspondent transactions.

True

False

Problem 4: The legal practitioner is entitled to collect 15% of the capital amount (VAT excluded) for each payment of the debt collection.

True

False

Problem 5: An example of where instructions can be given to the instructed attorney where no trust monies are involved is the registration of patents.

True

False

Problem 6: The client account of A South, a client of SA Attorneys, reflects a debit balance of R3 500 at the end of September 2020, before any transfer of trust funds. Which amount has to be transferred to the business bank account from the trust bank account on 30 September 2020 if A South has a credit balance of R3 000 on the trust creditor account?

A. R500 (transfer to trust bank account)

B. R3 500 (transfer to business bank account)

C. R500 (transfer to business bank account)

D. R3 000 (transfer to business bank account)