ACTG 2P40 Study Guide - Midterm Guide: Intentional Tort, Fiduciary
Document Summary
Professional liability may arise from three relationships: contractual liability contract for services. If contract is breached, breaching party is liable. Client can sue for damages: fiduciary liability. Fiduciary duty a duty imposed on a person who has a special relation of trust and loyalty to another. Three characteristics of a fiduciary relationship: some level of knowledge of the falsehood of the representation on the part of the defendant, the false representation caused the plaintiff to act, the plaintiff"s actions resulted in a loss. Negligent misrepresentation an unintentional tort imposing liability when an incorrect statement is made without due care for its accuracy, injury is caused. A successful negligent misrepresentation action must prove duty of care, breach of standard of care, injury to the plaintiff, and causation of damage. Step 2: determine if the professional"s behaviour breaches the fiduciary obligations. The professional must act honestly, in good faith, and only in the best interests of the client.