AIBE III 2012 Question 68 Answer

AIBE III 2012 Question 68

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Question 68 of 100 AIBE III 2012 Set Common

A, an advocate, received money on behalf of a client, C. A did not intimate C of the receipt of money, but noted in his accounts that he had received money on behalf of C and set aside the amount as his fees in full. On discovering that A had received the money, C demanded the money. A assures C that once the proceeding is over, C would have had to pay A fees anyway, and that he has already recorded in his accounts that his fees have been paid in full. In light of these facts, which of the following Statements is the most accurate application of the principle below?

A A has clearly fulfilled his duty by recording in the register that he has received C's money as fees.
B A had fulfilled his duty by recording in the register that he has received C's money as fees, but should have handed over the money to C on his demand.
C A erred in setting aside C's money for fees without written permission. Official answer
D A is entitled to his fees, and was within his rights to set aside the money as fees, as he noted in his accounts that his fees had been paid in full.
E The money was received on behalf of C and was not from C, and A was therefore entitled to set the money aside as fees.