What does a conflict of interest refer to?

A conflict of interest refers to a scenario whereby a lawyer may have divided loyalties, which can affect their ability to represent a client impartially. This situation arises when an attorney has multiple interests, or relationships, that could compromise their professional judgment in serving a client’s best interests. For example, if an attorney represents two clients whose interests conflict, or if the attorney has a personal relationship with someone involved in a case, it may lead to a conflict of interest.

Ethical rules require attorneys to disclose any potential conflicts of interest and, in some cases, to abstain from representing a client where such a conflict exists. This ensures that clients receive undivided loyalty and representation.

The other options refer to unrelated concepts. Working pro bono does not inherently result in a conflict of interest, nor does it reflect divided loyalties. An agreement between two parties, while it can be related to various aspects of law, does not pertain directly to conflicts of interest. Similarly, a type of legal fee arrangement is completely separate from the concept of loyalty and representation in legal matters.