What is a conflict of interest in legal practice?

A conflict of interest in legal practice arises when a lawyer's ability to represent a client is compromised by competing interests or relationships. This typically occurs in situations where a lawyer has a personal interest or has previously represented another party in a matter that could negatively affect their current client's interests.

When a lawyer is in a position where their professional judgment could be impaired due to obligations to another client, a personal interest, or any other conflicting scenario, it creates a significant ethical dilemma. It is essential for lawyers to identify and disclose any potential conflicts to ensure that their clients receive unbiased representation. This is why option B accurately defines a conflict of interest.

The other options relate to different aspects of legal practice that, while potentially concerning, do not capture the essence of what constitutes a conflict of interest. For example, failure to disclose fees is about transparency and ethical billing practices rather than conflicting interests. A disagreement between two clients reflects a communication or strategic issue rather than a fundamental conflict. Similarly, differences in legal strategy pertain to decision-making and advice within a representation context but do not inherently involve conflicting duties to multiple clients.