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?

Question

Quizplus · Accepted Answer

To succeed in an action against the appraiser, Mr. Jones must establish the elements of the tort of negligence. This involves proving that the appraiser owed him a duty of care, that the appraiser breach that duty by failing to exercise reasonable care, that Mr. Jones suffered a loss that was foreseeable as a result of the breach, and that Mr. Jones relied on the information provided by the appraiser. The fact that the appraisal was prepared for the employer company does not preclude an action in negligence against the appraiser individually. The other answer choices are incorrect.

An Employee Prepared an Appraisal of a Property for His