BU231 Chapter Notes - Chapter 4: Investment Company, Limited Liability, Responsible Care
Document Summary
Primarily concerned with application of contract and fiduciary law to professionals. Professional must do everything they can for the client. Professional has upper hand because client is dependent upon them for service. Beneficiary is peculiarly vulnerable to or at mercy of the fiduciary: conflicts of interest. Situation where a duty is owed to two or more clients who may. Requires complete fidelity and loyalty to the other party of the have competing interests relationship: duty in tort, third-party liability. A professional acting on behalf of two clients with competing interests may find it impossible to fulfill their duty to both: eg. Remax agent who tries to combine buyers and sellers to save themselves time: eg. Enron scandal where auditors had lucrative contracts and didn"t want to risk them by judging directors too harshly. Important to note that a duty may be owed in tort to more people than just the client who is paying for the services.
