Does a company have to follow the legal advice given by the in-house counsel?
- An in-house counsel or an external lawyer is engaged in an advisory capacity to the company. It is the company’s decision whether to follow any legal advice provided.
- A company may make a commercial decision to enter into a contract when legal advice has warned the company about the risks associated with the contract.
- However in deciding whether to follow legal advice the company must ensure it understands the advice and any potential consequences of not following that advice.
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