MGMT 3100 Chapter Notes - Chapter 5: Fiduciary, Intentional Tort, Liability Insurance
17 Jul 2016
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Document Summary
Professional: people who have specialized knowledge and skills that are relied upon by clients and others. Several causes of action are available to hold professional accountable for incorrect advice. In practice, almost all professional carry liability insurance. Liability may arise from 3 relationships, generating 3 different causes of action: The contractual relationship generates a breach of contract cause of action. The fiduciary relationship generates a breach of fiduciary duty. The tort of negligent misrepresentation is available when a tort of duty of care is owed. Most cases, professional stands in contractual relationship with their client. Special relationship of trust and loyalty may also exist between professional and client, giving rise to fiduciary duty. Professional owes duty of care to persons who may foreseeably be injured by their negligence. Agreement to provide professional services to client contains a promise, whether stated expressly or not, to perform those services competently.
