AFM231 Chapter Notes - Chapter 22: Fiduciary

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM231
• Professor: Darren Charters

Document Summary

Professional: someone engaged in an occupation, usually governed by a professional body, requiring the exercise of specialized knowledge, education, and skill. Retainer: an advance payment requested by a professional from a client to fund services to be provided to the client. Professional responsibilities: professi onals owe a range of responsibilities to their clients. These responsibilities are grouped into three categories: contractual duties, tort duties, and fiduciary duties. Tort duties: professional have duties in tort similar to those of other service providers. Negligence, negligent advice or misrepre sentation in particular, is most common. Negligence: in order for a professional to be liable for negligence, the claimant must establish the basic el ements of a negligence action: The professional owes the claimant a duty of care. The professional has breached the applicable standard of care. The professional"s conduct has caused the claimant"s loss. The claimant"s loss is not too remote from the professional"s actions.