MCS 3040 Chapter Notes - Chapter 22: Professional Negligence In English Law, Fiduciary, Disclose

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Raddocchia

Document Summary

Professional someone engaged in an occupaion, usually governed by a professional body, requiring the exercise of specialized knowledge, educaion, and skill. Professionals are held to higher standards then other service providers. Most professionals are governed by rules of professional conduct and codes of ethics of their professional bodies. The professional/client relaionship is a special relaionship of trust and loyalty. If the cost of hiring external business professionals becomes signiicant, the business will likely consider the employment opion. Responsibiliies of professionals to clients and others who rely on their work. Professional service contracts client must address key terms of contract prior to engaging a professional"s service. Retainer advance payment requested to fund services to be provided and thereby minimize the professional"s exposure to risk. The courts have recognized third-party claims for economic loss resuling from negligent misrepresentaion. It remains a controversial and contenious issue, paricularly in the context of an audit.