Secured transactions

Advice provided by attorneys must be based on reliable and authoritative sources. Advising a client, opposing legal claims made by opposing parties, and successfully negotiating in the best interests of your client require careful consideration of sources. Is the regulation you are relying upon from an official publication? Is the scholarly material authored by a source recognized in your jurisdiction? Is a translation of a legal document accurate?

Although the Internet provides a wealth of information, verifying the source and accuracy of that information can pose a challenge, particularly if it is in a language and from a source which is foreign to the lawyer. When searching for information on the Internet, several search strategies can improve the chances of obtaining reliable information. Once the information is obtained, a series of issues should be carefully addressed before the information is relied upon as a basis for providing counsel.

Learning Synopsis

This exercise examines strategies for obtaining up-to-date data and verifying the source and accuracy of information.

Exercise

Your firm has been contacted by a publicly funded international aid and development organization in your country. The agency provides loans to local investors who are developing projects in underdeveloped countries in partnership with businesses and private individuals domiciled in such countries.

According to the investment policy of the aid organization, loans must be securitized and are paid back in full on terms and conditions favourable to the borrower. The aid agency has been contacted by a local investor who wishes to develop a spa and resort facility and golf course on the island of Zanzibar in Tanzania. The project will provide a permanent, revenue-generating business which will employ several thousand locals.

The representative of the aid agency will shortly be travelling to Tanzania to discuss the project with local investors. The contemplated security for the loan is an area of coastal agricultural land, upon which the resort and golf course will be developed.

The agency asks you to prepare a short report including basic information on the investment climate before further research is carried out and local counsel retained. As Tanzania is a new development venue for the agency, and they can’t rely on their previous experience or knowledge of the country, they have stressed the importance of ensuring that any information you supply is from extremely reliable sources.

Your report should address the following areas:

1. Securing a mortgage on investments in Tanzania


2. Openness to foreign investment


3. Corruption


4. Protection of property rights


5. Expropriation and compensation


6. Dispute settlement


Using the Internet, locate reliable, accurate information in order to prepare your report.

Print version
Read Solution