BU231 Chapter Notes - Chapter 4: Intentional Tort, Liability Insurance, Fiduciary
Document Summary
Professionals are people who have specialized knowledge and skills that their clients rely on and are prepared to pay for. Liability may arise from three relationships, generating three different causes of action: The contractual relationship leads to a breach of contract cause of action; The fiduciary relationship leads to breach of fiduciary duty; and/or. The duty of care owed in tort leads to a tort cause of action. An agreement to provide professional services to a client contains a promise to perform those services competently. A breach of this promise is a breach of contract: results in a sue for damages. A professional"s duty may extend beyond the terms of her contract in an important way. When a person is in a special relationship of trust with a professional, the law imposes a fiduciary duty on that professional. Can still arise even when the professional provides services free of charge (no contract)
