Professional Liability Flashcards
What are the 4 types of duties owed by professionals?
- Contractual Duty
- Duty of Care
- Fiduciary Duty
- Duty to adhere to the professional code of conduct for the profession
What is the contractual duty from the term of the contract made by the professional?
An implication from the term of the contract that the professional will provide the services with due care.
What is the standard of care required from a professional?
That of a reasonable professional.
Can professional duty of care extend to third parties? If so, give an example.
Yes, only if those using the professional’s advice use it for its intended purpose.
Professional accountants were held liable to third party investors (“non-clients”) for negligence in Haig v. Bamford.
What is negligent misrepresentation?
A careless statement, that causes another harm.
What is fraudulent misrepresentation?
False statement made by anyone:
- knowing it to be false, or
- without belief in its truth, or
- recklessly, as to whether it is true or false.
What is a fiduciary duty?
A duty to act in the best interest of the client, keeping confidential what is meant to be confidential.
What is an example of a professional code of conduct professionals must adhere to?
APPEGA, for engineers.
What is liability insurance? Explain when it is needed.
Insurance in case of professional liability - needed if practicing through a limited liability partnership (LLP).
