4. Varda operates a financial consulting firm that gives advice to small busines

Question

4. Varda operates a financial consulting firm that gives advice to small business owners. Varda prepared a loan amortization schedule that assisted Gupta in winning a court judgment against Nguyen for unpaid sums owed him. Now, Nguyen is being sued by another of his creditors. Even though Varda previously was his adversary, Nguyen admired the quality of Varda’s work when she helped Gupta. As a result, Nguyen has asked Varda to prepare a loan amortization schedule on his behalf that will assist Nguyen in defeating this other creditor’s claim. Does Varda have a conflict of interest? Explain?

Explanation / Answer

Varda’s prime interest would be to help her clients with financial consultancy activity. Her clients could be varied in strength and may be even rivals of each other but that has not anything to do with Varda’s profession as such. Her consultancy service may be utilized by her clients to take charge of their rivals but Vardha would have no direct interest in their activity. Hence her consultancy service may only serve as the underlying object to win a court battle in the above case but her interest would only be in preparing loan amortization schedule for her client and not necessarily to understand how and for what purpose would that preparation be utilized in. Therefore, assisting Nguyen in preparation of loan amortization schedule shall not conflict her interest because it shall be part of her professional duty and nothing to do with the ulterior motive of her client towards the same.

So to conclude, there shall be no conflict of interest in this case.

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