ACTG 1P71 Lecture Notes - Lecture 5: Uberrima Fides, Fiduciary, Financial Statement
Document Summary
Professionals may be liable for: false or inaccurate information that causes an economic loss, breach of fiduciary duty or of contractual obligations. Financial loss: difficult to get damages for a purely economic loss. Insurance can be acquired through agents and brokers: designed to spread the risk of loss, a contract of utmost good faith. Breach of the duty of care between professionals and their clients: personal injury, tort claim, contractual relationship, fiduciary relationship, special relationship. If you fall outside these 3 limitations, you cannot sue for your negligent claim. Case: crane-christmas vs. candler: 1940s, company needed 10,000 pounds for tin mine, candler responds to aid saying he will invest 2000 pounds if he can see financial statements of the mine. Invests 2000 pounds: mine tanks, turns out company was doing poorly, statements were fraudulent, taken to court, (cid:862)give me my money back(cid:863, candler didn"t fit into any of those 3 headings with the court, claim failed.
