TABLE OF CONTENT

INTRODUCTION…………………………………………………………………………………..P 2

I- Legal opinion as a tool of risk management ………………………………………...P 3

A- Audit of validity and authority ……………........................................................P 3

B- Audit of the transaction’s validity……………………………………………...P 5

II- Legal opinion’s limit as a tool of risks management………………………………..P 5 A- The narrow scope of the legal opinion…………………………………………..P 5

B- The legal nature of the opinion letter…………………………………………....P 7

CONCLUSION …………………………………………………………………………………….P 7

Discuss the ways legal opinions are used to manage legal risks in international Banking transactions

INTRODUCTION Often called a closing opinion, the legal opinion is a document established by a law firm or a counselor, certifying whether the performance of the agreement for which, the legal opinion has been required is possible or not after having examined the compliance of the constitutional statutory of companies parties to the contract to the law of the state where it are incorporated together with the compliance in the formation of the agreement to its governing law. The furnishing of legal opinion letters could be done for all type of transactions such as, corporate, real estate, international property transactions or again banking transactions. This legal opinion has to be distinguished from the other type of legal advice given by counselors which are generally explanatory contrary to closing legal opinions, eg the explanation of the meaning of a contract term in a letter of legal advice. Indeed, the legal opinion is more a sort of audit of the legal existence of parties to the contract, of their legal capacity to enter into this kind of transaction/agreement and of the validity of the agreement. The nature of this letter (not explanatory) explains why, it contains only conclusions but not the reasons of those