According to MRPC Rule 1.8(a), what should a lawyer disclose before entering a business transaction with a client?

In the context of MRPC Rule 1.8(a), which addresses the requirements for a lawyer entering into a business transaction with a client, it is crucial for the lawyer to ensure that the terms of the transaction are not only fair but also fully disclosed in writing to the client. This requirement serves to protect the client’s interests and ensure transparency in the lawyer-client relationship.

The rationale behind this rule is rooted in the inherent power imbalance that often exists in the lawyer-client dynamic. By requiring written disclosure of the terms, the rule seeks to prevent potential conflicts of interest and ensure that the client comprehensively understands the transaction. Furthermore, the requirement for fairness aims to safeguard the client from potential exploitation or disadvantage.

While potential risks, details about past transactions, and personal financial statements may be relevant in certain situations, they are not explicitly mandated by Rule 1.8(a) as necessary disclosures before entering into a business transaction with a client. The focus remains on ensuring that the transaction terms are fair and clearly communicated in writing, thereby upholding the integrity of the attorney-client relationship.