Asked by Madison Jones on Jul 25, 2024
Verified
In Hodgkinson v. Simms, an accountant advised a client to invest in a real estate development while also acting for the developers. What did the Supreme Court of Canada find?
A) The presence of a financial risk was the identifying feature of a fiduciary relationship and, in this case, imposed the fiduciary duty.
B) The presence of a financial risk was the identifying feature of a fiduciary relationship but, in this case, did not impose a fiduciary duty.
C) The presence of loyalty, trust, and confidence were identifying features of a fiduciary relationship and, in this case, imposed the fiduciary duty.
D) A fiduciary relationship could not arise in circumstances where an investor acted of his own accord.
E) A fiduciary relationship could not arise in commercial circumstances, such as those found in this case.
Fiduciary Duty
A legal obligation to act in the best interest of another party, typically involving a relationship of trust, such as between a trustee and the beneficiaries of the trust.
Financial Risk
The possibility of losing financial capital due to market fluctuations, operational failures, or other external events.
Real Estate Development
The process of purchasing land, financing real estate deals, building or having builders construct projects, and ultimately selling the developed property.
- Identify the significance and consequences of fiduciary responsibilities in professional interactions.
Verified Answer
Learning Objectives
- Identify the significance and consequences of fiduciary responsibilities in professional interactions.
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