Figure Out the Definition and Example of a Legal Opinion Here!

PERTANYAAN

I am a freshman in law. I would like to ask a question, what is a legal opinion, and what is an example of a legal opinion? Please explain. Thank you.

INTISARI JAWABAN

Basically, legal opinions are usually made by advocates to be a reference in a legal event experienced by their clients. As for the matters contained in a legal opinion, starting from the identification of legal facts until the drawing of conclusions and recommendations that can be conducted or chosen by the client.

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Pahami Pengertian dan Contoh Legal Opinion di Sini! which was written by Bernadetha Aurelia Oktavira, S.H., and was published on Tuesday, 28 February 2023.

All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

What is Legal Opinion?

First of all, it is necessary to understand the meaning of legal opinion. According to Henry Campbell Black in the Seventh Edition of Black's Law Dictionary, as quoted by Hamzah Halim in his book entitled Practical Ways to Understand & Formulate Legal Audits & Legal Opinions (Cara Praktis Memahami & Menyusun Legal Audit & Legal Opinion), defines a legal opinion as a set of written documents which are used as applications for lawyers or the understanding of legal opinions relating to various legal issues or disputes of the relevant parties in accordance with the facts (p. 201).

Quoted from the article entitled Definition of Legal Opinions, Legal Memorandums, and Legal Audits, the procedure for drawing up legal opinions should contain the subject matter, facts on the matter, legal provisions or regulations that may be applied to the case, the applications of the laws, as well as conclusions containing advice from advocates (p. 2).

Furthermore, quoted from the article entitled Position of Legal Opinion as a Source of Law, legal opinions are usually made by advocates to be a reference in a legal event. Advocates must be able to answer and explain as easily as possible so that those who don’t understand the law (lack of understanding) can understand the law.

Contents of a Legal Opinion

So, what are the contents of a legal opinion? How to make a legal opinion? In response to this question, in a nutshell, a legal opinion should have the following matters.

1. Identification of legal facts

Not all events that occur are legal facts. Advocates are required to identify legal and non-legal facts. After that, legal facts are used as the basis for analyzing cases.

2. Identification of legal issues

After discovering legal facts, then legal issues must be formulated appropriately in order to identify which legal regulations are in accordance.

3. Inventory of legal regulations

Collect applicable laws and regulations in order to analyze legal issues. The research for said laws and regulations may be conducted based on their hierarchies.

4. Conduct legal analysis

Problems are then analyzed using the relevant legal facts and regulations, as well as the opinions of legal experts and jurisprudence. This analysis must be based on a strong legal argument.

5. Draw conclusions

Convey conclusions from the result of the analysis, along with recommendations that can be conducted or chosen by the client. However, they must not be in the form of promises. In essence, the conclusion must be able to answer legal issues, for example in the form of allowed or not, violated the law or not.

Publication of a Legal Opinion

Legal opinions, according to Hamzah Halim, generally contain inputs from various points of view on how the law works and in relation to certain legal events or legal issues which can be published through the following channels (pp. 219-220).

1. Mass Media Press

Must be submitted in writing with a focus on discussing the validity of legal products and their implementation in both positive and negative contexts.

2. Electronic Mass Media

It usually discusses further about how the law works, the acts of the legal apparatus/officials, the way of law enforcement, and all forms of decisions made by the judges which are delivered through audio-visual means.

3. Seminar/Scientific Discussion Panel

The function of a legal opinion here is as a material of discussion in relation to certain legal matters. For example, regarding the law application systems by law enforcers and the community, both the act of consistency and its consequences.

4. Education/Training

Usually carried out during the socialization of legal products, legal opinions are required in order to better understand the substance of the material regulated therein. This review of legal opinions takes into account the juridical, sociological, and philosophical basis, and focuses on the practice of law which prevails in the community.

Example of a Legal Opinion

In order to ease your understanding, we provide an example of a legal opinion when a company is about to conduct an Initial Public Offering ("IPO"). Mario W. Sutantoputra and Sarmauli Simangunsong in their book entitled Complete Guidelines for Legal Due Diligence (LDD) & Legal Opinion (LO) in Conducting Initial Public Offering (IPO), explains that capital market legal consultants will provide legal opinions and legal audits or often referred to as legal due diligence when undertaking an IPO (p. 39).

The purpose of conducting legal audits and legal opinions is so that investors who will buy IPO shares from the issuer whose IPO understands and is aware of the condition of the company from the prospective issuer presented in the prospectus. In addition, it is also to know the opportunities and risks that will be faced in the future after buying shares on the stock exchange (pp. 39-40).

In relation to the legal opinion delivered by a capital market legal consultant, Article 80 section (1) letter d Law 8/1995 states that if the information on material facts in relation to a public offering is incorrect and misleading, the capital market-supporting profession or other parties who provide an opinion or statement must be responsible either individually or jointly for any losses that arise.

Therefore, investors may only demand compensation for any losses incurred as a result of opinions or assessments which are provided by the relevant capital market-supporting profession.[1]

So, selecting a capital market legal consultant with experience in the capital market is an important step for the management of a prospective issuer and will determine the success of an IPO (p. 41).

These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Law Number 8 of 1995 on Capital Market.

Reference:

1. Hamzah Halim. Cara Praktis Memahami & Menyusun Legal Audit & Legal Opinion. Jakarta: Kencana, 2015;
2. Mario W. Sutantoputra dan Sarmauli Simangunsong. Pedoman Lengkap Legal Due Diligence (LDD) & Legal Opinion (LO) Dalam Dangka Initial Public Offering (IPO). Yogyakarta: Penerbit ANDI, 2018.

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[1] Article 80 section (2) Law Number 8 of 1995 on Capital Market (“Law 8/1995”).