Which of the following conditions must be met before a lawyer can enter into a business transaction with a client?

Before a lawyer can enter into a business transaction with a client, it is essential that the client is advised to seek independent counsel. This requirement serves multiple important purposes in maintaining the integrity of the attorney-client relationship.

Firstly, advising the client to seek independent legal advice ensures that the client fully understands the implications and potential conflicts that may arise from entering into a business transaction with their lawyer. It protects the client’s interests by allowing them to receive unbiased advice from another legal professional who does not have a vested interest in the transaction.

Additionally, this practice helps to prevent any assumptions of undue influence or coercion that might arise if the client feels pressured to agree to the terms proposed by the lawyer. This is crucial in situations where there may be inherent imbalances in power or knowledge between the lawyer and the client.

Other options such as requiring verbal disclosure or obtaining approval from the lawyer's colleagues do not specifically address the fundamental issue of ensuring the client’s informed consent and understanding of the transaction. The requirement that the transaction must benefit the lawyer significantly is also not a necessary condition for entering into such a business arrangement, as the focus should be on the protection of the client's interests rather than solely benefiting the lawyer.