MGMT 3100 Chapter Notes - Chapter 5: Fiduciary, Liability Insurance, Financial Statement

• School: York University
• Department: Management
• Course: MGMT 3100
• Professor: Peter Mac Donald

Document Summary

There is significant risk of economic harm form any negligent/fraudulent conduct by professionals. Professionals: have specialized skill/knowledge; belong to a professional organization. Professionals must honour fiduciary responsibilities separate from any tort/contractual obligations. Professional can cover damages by increasing fees and by purchasing insurance protection (an argument) Arises from the following relationships: contractual relationship generates breach of contract cause of action, fiduciary relationship generates breach of fiduciary duty, tort of negligent misrepresentation is available when a tort duty of care is owed. An agreement to provide professional services to a client (contains a promise) Duty imposed on a person who stands in a special relation of trust and loyalty to another. Prevailing characteristics: professional has undertaken to act in best interests of the beneficiary, beneficiary is vulnerable to or at the mercy of professional"s control/discretion, legal/practical interest of beneficiary could be harmed by professional"s exercise of discretion/control.