Management and Organizational Studies 2275A/B Chapter Notes - Chapter 22: Professional Corporation, Disclose

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Professionals who are employees are governed by employment law. Relationships with external professional service providers are defined by contract law. Professional-client relationship is a special relationship of trust and loyalty held higher standards than other service providers. )f contract price isn"t stated, principle of quantum meruit applies client pays a reasonable amount for service provided. Conduct has caused claimant"s losses (cid:523)but for test(cid:524) Losses is not too remote from professional"s actions. Auditors may have responsibilities to third parties. Must act primarily in the interest of the person to whom the responsibility is owed. Restrain from personal profit beyond charging a reasonable fee. Lawyer-client privilege right of client not to have communications with lawyer divulged to a third party. Professional corporation: authorized by statute to carry on a specific profession. May still be personally liable for negligence. Whether professions allow members to form llps is determined by provincial legislation governing that profession.