When Providing the Factual Background in an Internal Legal Memorandum

question 44

Multiple Choice

When providing the factual background in an internal legal memorandum, you should

• A) omit facts that are unfavorable to the client.
• B) include irrelevant law information to make the facts section look more impressive.
• C) use lots of legalese.
• D) present an objective summary of key facts.

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Definitions:

Priority of Creditors

The legal principle determining the order in which creditors are paid in the event of a debtor's bankruptcy or liquidation of assets.

Secured Transactions

Financial agreements or deals where the borrower provides a creditor a security interest in an asset as collateral for a loan.

Bailment for Value

A legal relationship in which physical possession, but not ownership, of personal property is transferred from one person to another for a specific purpose, with an expectation of compensation.

Gratuitous Bailment

A bailment where the bailor transfers possession of property to the bailee without expecting any payment or benefit in return.