ACTG 2P40 Study Guide - Fiduciary
Document Summary
Professional liability is the area of tort law in cases of negligence (unintentional torts) that applies to professionals such as doctors, lawyers, accountants, engineers and pharmacist: contractual duty, fiduciary duty, duty in tort. Misrepresentation is when someone makes an untrue statement knowing it is untrue with the intention to mislead someone or a group or if someone intentionally conceals valid information to mislead. The courts feared that extending the liability to the third person would hold almost strict liability on the professionals and limit the freedom to practice the professional field. The hedley byrne principal established in 1963 (12 yrs after) in hedley byrne v. Also the hedley byrne principal established that in a case of a disclaimer that the duty of care is only owed to those who are mentioned in the disclaimer. More over the hedley byrne principal established the principal for liability for the third person in case of deceit.
