Ford & Co., CPAs, prepared Owens Corp.'s tax returns. Relying on these tax returns, Century Bank lent Owens $750,000. Ford was unaware that Century would receive a copy of the tax returns 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
A. Free from contributory negligence.
B. In privity of contract with Ford.
C. Justified in relying on the tax returns.
D. In privity of contract with Owens.
Answer: C. Justified in relying on the tax returns.
Business
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