BU231 Chapter Notes - Chapter 5: Fiduciary, Intentional Tort
Document Summary
Chapter 5 professional liability: the legal challenges. Extends beyond a contract it"s a special relationship. First have to prove there is a fiduciary relationship: person has agreed to act in best interest, the beneficiary is at the mercy of the fiduciary"s control, interest of beneficiary could be harmed by fiduciary"s discretion. If you"re in this relationship you have more obligations than just what"s stated in the contract. When a professional carelessly (or deliberately) causes damage to client. Third-party liability liability to some other person who stands outside a contractual relationship. You can"t sue for all three but you can pick one if they are liable for all. Negligent misrepresentation in unintentional: includes duty of care, breach of standard of care, injury, and causation of damage. Most of these are easy to prove when an accountant told the client when to pay taxes or something like that but it"s harder when the banker says the company is financially sound .
