Joint Consultants Forum
Identification and Management of
Legal Liabilities
Institute of Physics
13th July 2005 2005
Ewan A MacGregor
Director - Griffiths & Armour Professional Risks
Content
Basis of Legal Liabilities
Aspects of Contract Formation
Consequences of Breach
Basis of PI Insurance
Summary
Final thought
Basis of Legal Liabilities
• Statutory Duties
• Common Law Obligations
• Contractual Liabilities
-Law of the parties
-The right to agree upheld
• Joint and Several Liabilities
• Voluntary Assumption of Liabilities
The Law of Contract
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Offer
Acceptance
Consideration
Simple contracts / deeds
Assignment
Warranties
Consequences of Breach
• Statutes
• Defined in statute
• Common Law Obligation
• Common Law
• Limited to certain parties
• Different consequences depending on tort
• Breach of Contract
• Limited to contractual party / Rights of 3rd Parties
• Financial / Consequential losses
Basis of PI Insurance
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Extent of cover
Annual / Claims made policy
Each and Every / Aggregate
Civil Liability / Negligence
Costs in Addition / Costs Inclusive
Conditions precedent to cover
Summary
 Contracts create your own law
 Collateral Warranties are contracts
 No fee does not mean no liabilities
 The level of PII is not a limit of liability
 Agree reasonable limits of liabilities
 It’s what you do AND what you say
Final Thought
It’s the alternative that creates the liability
Disclaimer
Griffiths & Armour Professional Risks Ltd acts as manager for the professional indemnity division
of Griffiths & Armour. Griffiths & Armour Professional Risks Ltd is an appointed representative of
Griffiths & Armour which is authorised and regulated by the Financial Services Authority. Please
note that any information regarding taxation is based on Griffiths & Armour’s understanding of
legislation and Inland Revenue policy that may change in the future.The information contained in
this presentation does not constitute advice.
Griffiths & Armour and Griffiths & Armour Professional Risks Ltd accept no responsibility for action
taken as a result of information contained in this presentation. © 2005 by Griffiths & Armour.All
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