PROFESSSIONAL LIABILITY

Question 1

Explain Professional Liability

Answer 1

Professionals can be liable in five distinct ways:

1. Contractual Liability – Arises when a professional promises something they cannot deliver.
2. Negligence – Professionals are not liable for bad results, but for failing to act with reasonable skill or care.
3. Hedley Byrne (Negligent Misrepresentation) – Giving careless or incorrect advice that someone relies on and suffers a financial loss. This ties to tort law, unlike contract breaches.
4. Fiduciary Duty – Professionals must act in utmost good faith for the benefit of their client.
   To prove a breach:
   A fiduciary relationship existed
   The fiduciary acted in self-interest
   The breach caused harm
5. Regulatory Liability – Professionals must follow statutory regulations or rules of their licensing bodies, or face discipline.