Question

Algonquin, an attorney who is trying to buy a building, occupies a fiduciary relationship with Kingfish, his client. If Algonquin buys the building from Kingfish at a low price, but before buying it, he made full disclosure about the value of building to Kingfish, and made sure Kingfish received independent advice from someone else, this could prevent Kingfish from being able to avoid the transaction.

Answer 1

Algonquin, as an attorney, has a fiduciary duty towards Kingfish. His full disclosure and ensuring of independent advice regarding the building's sale may legitimize the transaction under the Principle of Justice in acquisition and transfer, thus hindering Kingfish's ability to void the transaction.

Step-by-step explanation:

The situation described involves an attorney, Algonquin, who is in a fiduciary relationship with his client, Kingfish. When a fiduciary purchases something of significant value from their client, there are specific steps that must be taken to ensure the transaction is fair and does not violate the fiduciary's duties.

Algonquin's actions in making a full disclosure about the value of the building and ensuring that Kingfish received independent advice could serve to legitimize the transaction and prevent Kingfish from being able to claim that the transaction was unjust and seek its avoidance.

Within the principles of lawful transactions, there are a few key concepts to consider:

1. A person who acquires a holding in accordance with the Principle of Justice in acquisition is entitled to that holding.
2. A person who acquires a holding in accordance with the Principle of Justice in transfer, from someone else entitled to the holding, is entitled to the holding.
3. No one is entitled to a holding except by (repeated) applications of (1) and (2).