Write notes on the following as desired: Summarize standards applicable to preparation of an opinion. Mention the common purposes for which legal opinion are sought.

Standards applicable to preparation of an opinion General: A lawyer is expected to be well informed and to exercise such skill, prudence and diligence as lawyers of ordinary skill and capacity commonly possess and exercise in the performance of the tasks which they undertake. When a matter falls within a recognized area of legal specialty, such as tax or securities law, it is advisable to take that assignment only if it falls within the competence of the professional. Customary Practice: The opinion preparers should devote the time needed to interpret and apply legal principles relevant to the situation at hand, ascertain (through appropriate inquiry and certificates of officers of the Company) the facts that underlie the opinion, and identify areas of significant uncertainty (if any) in the interpretation and application of legal principles. In certain cases, opinion givers may conclude that it is necessary to conduct research with respect to particular legal principles or to conduct an investigation of the underlying facts relevant to the opinion. Fraudulent or Misleading Opinions: An opinion giver may be liable for an opinion that constitutes fraudulent misrepresentation. A lawyer owes a duty to non-clients to refrain from fraudulent misrepresentation. It is generally understood that, regardless of compliance with other standards, and even if an opinion is technically correct, a lawyer should not render an opinion that the lawyer recognizes would be misleading to the opinion recipient. Ethical Issues Relating to the Provision of Opinions to Non-clients: A lawyer delivering an opinion letter to a non-client should also consider ethical principles. For example, rendering an opinion to a non-client may conflict with the opinion giver's ethical obligations to maintain the confidence of its client. He should decline to give legal opinion in such cases. Some of the common purposes for which legal opinion are sought are as follows: Lawfulness of an action: When one wants to know if an action is lawful. Legal consequences: Sometimes a party entering into a transaction obtains legal opinion to ascertain if the action will lead to desired legal consequences. Answer questions: When client wants professional guidance in an area. Regulatory requirements: Sometimes legal opinion has to be sought because it is mandated by law. Compliance: It can be sought to meet the compliance requirement. Protective shield: Clients sometimes desire the protection of an expert's legal opinion. Designed to mislead: Sometimes promoters of unscrupulous schemes obtain as many opinions from different experts as is possible and use the one which is favourable to their scheme of things. To satisfy contractual requirements: Sometimes a clause in commercial contracts require the opinion of an expert. Due Diligence: Lawyers and clients often cite due diligence as the principal reason for requesting.