What’s a legal opinion? Formal legal advice

Have you ever wondered what’s a legal opinion? If so, you’ve come to the right place.

A legal opinion is a formal document lawyers issue to their clients in writing to help them make decisions. Some people also call it an “opinion letter”. No matter what anyone calls it, the document expresses a lawyer’s view on the legality of a transaction or matter or analyses a product or service against the applicable legal framework. Further, where a foreign lawyer or law firm (outside your country) gives the opinion, it’s usually called a “foreign legal opinion”. 

NB: in this post, when we use “legal opinion”, we’re not referring to a written explanation by a judge that accompanies an order or ruling in a court case, laying out the rationale and legal principles for the ruling.  

When might you need a legal opinion?

You might consider seeking a legal opinion in various situations, such as:

• entering into complex contracts or agreements.
• starting a new business or venture.
• facing a legal dispute or potential litigation.
• making significant financial or investment decisions.
• dealing with employment or labour law issues.
• navigating intellectual property matters.
• addressing regulatory compliance concerns.

Why legal opinions are important

• Informed decision-making: legal opinions help you understand the legal implications of your matter to make informed decisions.
• Risk mitigation: they can identify potential legal risks and provide recommendations on how to mitigate them.
• Dispute resolution: you can use legal opinions to support negotiations, settlements, or litigation in case of disputes.
• Compliance: they help ensure that individuals and businesses comply with relevant laws and regulations.

What makes an effective legal opinion?

• User experience: the lawyer must draft the opinion with its audience in mind, using plain language and industry-specific terminology; the opinion needs to empower its audience to make decisions based on its reasoning.
• Capturing facts and assumptions: the opinion should set out the facts giving rise to the need for the opinion; it should also list the assumptions the lawyer makes in drafting the opinion.
• Identification of legal questions: the opinion should clearly outline the specific legal question or problem that you need to be address.
• Relevant laws and regulations: it identifies and explains the applicable laws, statutes, regulations, and case precedents relating to the legal questions.
• Analysis and interpretation: the lawyer provides a detailed analysis of the relevant laws and how they apply to the specific facts and circumstances of the case.
• Conclusions and recommendations: based on the analysis, the opinion offers clear conclusions and recommendations on the legal course of action that should be taken.
• Disclaimer: most legal opinions include a disclaimer that the drafter based the opinion on the information you provide and the law at the time of drafting the opinion.

Legal professional privilege and confidentiality

Legal opinions typically enjoy a special form of protection called “legal professional privilege”. This privilege protects communications between a lawyer and their client by ensuring confidentiality and fostering open communication necessary for effective legal representation. The privilege belongs to the client, who has the sole right to waive it, allowing disclosure of the opinion’s contents.

Key points about legal professional privilege and legal opinions:

• The opinion itself, along with any related communications and documents, is generally protected by legal professional privilege.
• This privilege prevents unauthorised disclosure of the opinion’s contents to third parties, including:
  • regulatory bodies,
  • tribunals, or
  • opposing parties in litigation.
• The client has control over whether to disclose the opinion or waive privilege.
• No regulatory body or tribunal may access or seize a legal opinion without the client’s explicit consent or a court order demonstrating exceptional circumstances that outweigh the privilege.

Seeking professional legal advice

Remember that legal opinions are complex documents that require specialised legal knowledge and expertise. If you’re facing a legal issue or require guidance, it’s crucial to consult with a qualified lawyer. For effective legal opinions, contact us today.