An employee prepared an appraisal of a property for his real estate development company.The employee had been told that the appraisal would be used by the company to attract a potential investor,Mr.Jones,for the company's client,Mr.Lee.Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws,the appraisal was not accurate.Mr.Jones was misled about the value of the land and suffered a financial loss of $20 000.On these facts,which of the following is true?
A)To win in an action against the appraiser,Jones must prove that the appraiser owed him a duty of care,fell below the standard of care owed,and thereby caused him a foreseeable loss because of his reliance on the information.
B)Jones could not take any action because he had no contract with the company or the appraiser.
C)A person cannot be sued for words that cause loss,only for actions that cause physical injury.
D)If Jones sues the appraiser,he cannot also sue the employer.
E)The cause of action most likely to be taken by the investor is defamation.

Question

Quizplus · Accepted Answer

In this scenario, the appraiser had a duty of care towards Mr. Jones as they were preparing an appraisal for a potential investor on behalf of the company. It was the responsibility of the appraiser to ensure that the appraisal was accurate and reliable. However, due to their carelessness, Mr. Jones suffered a financial loss. Therefore, if Mr. Jones sues the appraiser, he must prove that the appraiser breached their duty of care by failing to check the recent changes in the zoning by-laws, which led to the inaccurate appraisal. He must also show that the loss he suffered was a foreseeable consequence of his reliance on the information provided in the appraisal.

An Employee Prepared an Appraisal of a Property for His