Ford & Co., CPAs, issued an unqualified opinion on Owens Corp.'s financial statements. Relying on these financial statements, Century Bank lent Owens $750,000. Ford was unaware that Century would receive a copy of the financial statements or that Owens would use them to obtain a loan. Owens defaulted on the loan. To succeed in a common law fraud action against Ford, Century must prove, in addition to other elements, that Century was

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In a common law fraud action against Ford, Century must prove that it was justified in relying on the financial statements. Privity of contract is not required in cases of fraud, and contributory negligence is not relevant to the case. While Century did not have a direct contractual relationship with Ford, it may still hold Ford liable for fraudulent misrepresentation if it can prove that it justifiably relied on the financial statements.

Ford & Co, CPAs, Issued an Unqualified Opinion on Owens Corp