Levels of Business Lawyer Involvement

The level of lawyer involvement in any business transaction can vary. Some clients wish to limit their lawyers involvement to a very basic level, while others need significant legal assistance. Sometimes this decision is based upon the type of transaction, the issues at stake, or the client’s legal budget. Many times a potential client is not aware of the different levels of assistance that are available or the value that a lawyer could add to a transaction.

Basic Level - The Agent-Principal Relationship

At the most basic level, a business lawyer performs certain tasks to complete a business transaction and relieves the client of having to perform those tasks itself, such as drafting standard ancillary documents and conducting closings. However, the value added by a business lawyer in performing these clerical tasks is minimal. The lawyer is simple an “agent” acting for his “principal” presumably because the principal does not have the time or inclination to do the work itself. There are certain “non-negotiable” transactions that occur where this is a good model, such as where a small business client is purchasing a franchise from a large, established franchisor. Another example is standard customer contracts required from vendors, or required of customers, once the initial form is finalized.