Tracer Corp., an exploration company, wishes to develop a silver mine on a piece of land known as the Harris tract. It lacked the capital to do so on its own, so it entered into negotiations with Big Tree Mining Ltd. for a joint venture on the project. The negotiations collapsed. Big Tree, believing Tracer's information that there was a rich silver vein on the Harris tract and knowing that Tracer did not yet own it, bought the land itself and subsequently developed the mine, making a huge profit. Which of the following is true?
A)Tracer has no remedy unless it establishes that Big Tree owed it a fiduciary duty.
B)Tracer has no remedy unless it establishes that Big Tree acquired the Harris tract pursuant to a constructive trust.
C)Big Tree is liable to Tracer for breach of confidence
D)Tracer has no remedy unless it establishes that Big Tree committed a breach of contract.
E)Any one of A, B, or D

Question

Quizplus · Accepted Answer

Big Tree is liable to Tracer for breach of confidence because it used confidential information obtained during negotiations to acquire the Harris tract and develop the mine.