Page 49 Flashcards by Megan Woodruff

Professionals are always liable for negligently prepared what?

Reports or documents

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What is the split for how far liability goes for professionals being responsible for negligently prepared documents or reports?

traditional view: not liable unless there is privity

- modern view: D must know the third-party was intending to rely

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What is liability limited to for actual reliance for negligent misrepresentation?

People the defendant would reasonably know to rely on the statement

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Who are the people that would be considered in relation to proximate cause for negligent misrepresentation?

Defendant is only liable to the person the representation was made to and any other specific people he knew would rely

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What is the rule for damages for negligent misrepresentation?

Same as misrepresentation with benefit of the bargain rule and out of pocket loss rule

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What is considered in the benefit of the bargain rule for damages for misrepresentation?

Value of the property as contracted for minus the value it actually was

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What is the simple way of saying the out-of-pocket loss rule for damages for misrepresentation?

Price paid minus value received

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Can you recover emotional distress for negligent misrepresentation?

Yes, if it is a natural and proximate consequence of misrepresentation

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What is intentional interference with contract?

Recovery is given when defendant intentionally causes a third person to breach an existing enforceable contract with the plaintiff

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If a defendant is unaware of the contractual relationship, can he be guilty of intentional interference with contract?

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If an opera singer is induced to breach her contract with an opera house by you because you own a different opera house, what are you liable for?

Intentional interference with contract

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Intentional interference with contract only applies to what party?

Inter-meddling one, not the one that was actually involved in the contract

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If someone interferes with an illegal or against public policy contract, can they be guilty of intentional interference with contract?

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What does the plaintiff have to prove for intentional interference with contract?

That the defendant’s interference was improper

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What can justify intentional interference with contract?

fair and ethical competition
protecting your own financial interests
interfering with an illegal or against public policy contract

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Are you allowed to encourage someone to buy your product instead of the competition’s and not be liable for intentional interference with contract?

Yes, because that would be fair and ethical competition

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Are you allowed to wrongly accuse your competition of putting something gross in their product so that you can win business?

No, that would be intentional interference with contract

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When are you allowed to act in your own financial interest and not be liable for intentional interference with contract?

As long as the breach-inducing activity has a justifiable purpose and you used justifiable methods

Are you guilty of intentional interference with contract if you were protecting the interests of others or the public at large?

Insurance companies acting in bad faith and refusing to pay legitimate claims are liable for what?

Tortious breach of covenant of good faith and fair dealing

What are the elements of intentional interference with contract?

valid contract between P and third-party
D knew about the contract
D intended to interfere
D caused the interference
damages to P

What contracts are protected from intentional interference with contract?

Any contract is protected unless it is illegal

Can you get recovery for intentional interference with contract even if the contract was unenforceable because of lack of consideration, mutuality, terms, SOF, unconscionability, or failure of a condition precedent?

Under the majority view, yes because it is the relationship being interfered with, not the particular contract

What must the defendant know about the contact in order to be guilty of intentional interference with contract?

He must know facts from which he could’ve concluded there was a valid contract

If you negligently interfere with a contract relationship without actual knowledge that there was a contract, can you be guilty of intentional interference with contract?

What is the defense to intentional interference with contract that involves acting to protect your own financial interest?

If someone owes you money, and you collect that money, but because you do that it causes another party to be unable to collect the money they are owed for their contract, then the person breaches his contract, but you are not held liable for intentional interference with contract

If you hire someone that has already breached a contract, can you be liable for intentional interference with contract?

No, because you did not cause the interference

What kind of role do you have to play in order to be guilty of intentional interference with contract?

You must play an active role in the interference

Must there be a breach for intentional interference with contract?

No, you just have to show that the defendant prevented performance or made performance more difficult

Plaintiff must suffer damages in order for defendant to be liable for intentional interference of contract, but what can the damages be?

Economic, mental distress, punitive with malice, etc.

How can you not be liable for intentional interference of contract when it relates to the social good?

If there is proof that both the ends and the means are justifiable and the acts were for social good

What is the right that is protected in intentional interference with prospective economic relations?

The right to pursue business without unjustifiable interference

What must be reasonably certain in order to prove IIPER?

That the plaintiff would've entered a contract with the third-party (just speculating or believing is not enough)

What are the two areas of IIPER?

- interference with contract | - interference with prospective advantage

What is interference with prospective advantage?

When your conduct intentionally and knowingly causes another party to not enter a business relationship with someone else that would have otherwise probably happened

What is a justification that excuses interference with prospective advantage?

Fair competition

What are the elements of intentional interference with prospective economic relations?

- economic expectancy - D knew of economic expectancy - D intended to interfere - D caused interference - damages to the P

How can you cause an interference that would make you liable for IIPER?

- you INDUCE a third-party to enter a prospective relationship with the P - you PREVENT the P from acquiring the prospective relationship

What is the bona fide competitive means privilege to IIPER?

You can use any bona fide competitive means to get customers for yourself before they enter a contract with the plaintiff

How can you lose the bona fide competitive means privilege to IIPER?

By using unlawful or tortious means

What is common-law deceit?

Intentional misrepresentation made with the express intent of causing reliance on a fraudulent statement and causing injury to a person that relies on the statement

If you actively conceal rotting floorboards when you sell a house, what is that called?

Common-law deceit

For negligent misrepresentation, does the D have to be in privity with the plaintiff?

No, defendant can be liable for misrepresentation to a third person if he knows the client intended to communicate the info to that specific person or group and intended they rely on it