What are the professional conduct guidelines for a lawyer who imposes conditions of trust on a vendor's solicitor?

Alberta, Canada


The following excerpt is from 286193 Alberta Ltd. v. Nimji, 1992 CanLII 6191 (AB QB):

The Code of Professional Conduct states that: "The lawyer should not, unless required by the transaction, impose upon other lawyers impossible, impractical or manifestly unfair conditions of trust." While the vendor's solicitor did not technically deviate from those guidelines, I note the comments by Riche D.C.J. in Tooton v. Atkinson (1985), 52 Nfld. & P.E.I.R. 167, 153 A.P.R. 167 (Nfld. Dist. Ct.), at p. 175 [A.P.R.], to the effect that: … it was not proper for [the purchaser's solicitor] to forward the balance due on the purchase price subject to a condition which was not an agreed term of the agreement of purchase and sale. If this conditional delivery was not acceptable to [the vendor's solicitor] he should have properly rejected the tender and demanded unconditional payment. While Riche D.C.J. was addressing a fact situation which differs in some respects from the case at bar, the propriety of the conditions imposed by the vendor's solicitor, particularly in the letter of June 30, is questionable. However, by using the documents, the purchaser is taken in law to have accepted those conditions and was not entitled cancel the sale agreement.

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