BU231 Chapter Notes - Chapter 5: Smoke Detector, Life Insurance, Fiduciary
Document Summary
There is significant risk of economic harm from any negligent or fraudulent conduct by professionals. This chapter focuses on legalities around professionals. In practice, almost all professionals carry liability insurance. When there is no contract between the professional and the injured party; in such circumstances, fiduciary liability and tort liability are the alternatives. A duty imposed on a person who stands in a special relationship of trust and. A (cid:498)special(cid:499) relationship with a professional, the law imposes a fiduciary duty. The highest standard of care on that professional. First step to imposing liability for breach of fiduciary duty is establishing that the relationship is a fiduciary one. Doctor & patient control or discretion: a legal or practical interest of the beneficiary could be harmed by the. Not every relationship is automatically a fiduciary one, determined using the above criteria: broker & client relationship depends of certain facts.
