Textbook Notes (369,149)
Canada (162,420)
Business (2,391)
BU231 (317)
Chapter 4

BU231 Textbook Notes Chapter 4.docx

4 Pages
84 Views

Department
Business
Course Code
BU231
Professor
Shelley Mc Gill

This preview shows page 1. Sign up to view the full 4 pages of the document.
Description
Chapter 4  Professionals = people who have specialized knowledge and skills that their clients rely on and are prepared to pay for o Usually belong to a professional organization and licensed Liability of professionals  liability may arise from 3 relationships, generating 3 diff. causes of actions  Contractual relationship  breach of contract  most often  Fiduciary relationship  breach of fiduciary duty  Duty of care owed in tort  tort cause of action Contractual obligations  An agreement to provide professional services to a client contains a promise to perform those services competently o Breach of this promise = breach of the contract  Sometimes, there is no contract between the professional and the injured party  so fiduciary or tort liability are the only alternatives Fiduciary duty  A duty imposed on a person who stands in a special relation of trust to another  Can arise even when the professional donates services free of charge so that no contract exists  Not every professional relationship is a fiduciary one  Steps to imposing liability for breach of fiduciary duty o Establish that the relationship is one to which the duty applies (3 characteristics)  The fiduciary (usually the professional) has scope for the exercise of some discretion/ power  The fiduciary can unilaterally exercise that power or discretion to affect the beneficiary’s legal or practical interests  The beneficiary is particularly vulnerable to/ is at the mercy of the fiduciary holding the discretion/ power  Ex. Lawyer-client, doctor-patient o Determine if the professional’s behaviour breaches the fiduciary obligations  They must act honestly, in good faith, and only in the best interests of the client  A fiduciary should not place themselves in a conflict of interest and has a duty not to profit or attempt to profit at the client’s expense  Conflict of interest = a situation where a duty is owed to a client whose interests conflict with the interests of the professional or other clients  Liability for breach of fiduciary duty may arise without any negligence  Defendant may be under a duty to account = the duty of a person who commits a breach of trust to hand over any profits derived from the breach Tort liability  When a professional deliberately or carelessly causes damage to a client o their contract may also have been breached  expands the possible plaintiffs beyond clients who have paid for the advice o ie. auditors who express an opinion on the accuracy of the client firm’s financial papers o when doctor A gives a professional opinion to doctor B concerning doctor B’s patient o known as third parties o third-party liability = liability to some other person who stands outside a contractual relationship Choosing a cause of action  court will now award double or triple the damages because there were many causes of actions  but might affect the amount of damages awarded Tort liability for inaccurate statements Misrepresentation  deceit = an intentional tort imposing liability when damage is caused by false statement made with the intention of misleading another person o also when a person deliberately conceals or withholds information  fraudulent misrepresentation = an intentional tort imposing liability for an incorrect statement made knowingly with the intention of causing injury to another  negligent misrepresentation = an unintentional tort imposing liability when an incorrect statement is made without due care for its accuracy, and injury is cased o purely economic loss, rather than physical injury  Deceit or fraudulent misrepresentation requires at least some guilty knowledge or disregard for the falseness of the information. Negligent misrepresentation does not. The Hedley Byrne Case  Disclaimer = an express statement to the effect that the person making it takes no responsibility for a particular action or statement The duty of care  2 part test o Requires an inquiry into whether there was a sufficiently close relationship between the plaintiff and the defendant that carelessness on
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit