liability and conversation


1. liability should not be awarded in relation to genreal conversation, only in formal settings when advice is given that the person is qualified to give or holds themselves out as qualified to give, and a fee is received. Lack of a fee should not cancel this if the other conditions are in place.


2. general conversation should not be taken to form a binding contract, in general a signed document is needed, or a least a formal and clear conversation with the clear intention of creating a legally binding contract. E.g. 'please place an order to purchase 10,000 BHP shares for discretionary account 27'.


3. transfers of assets or control should not be effective if in relation to general conversation, only if specific statements are made by the granting party which indicate a clear intention that this event take place.




It is the intention of the law to resolve disputes between parties, and to uphold actions that are relevant to the legal sector, not for technical issues to allow one party to gain assets from another. written documents are generally interpreted quite strictly however.


