Protect Your Assets Like a Reasonable Prudent Person

In our litigious society, the slightest error can give rise to a lawsuit that will leave you bankrupt. Lawsuits seeking money judgment for failure to exercise proper care in your actions are called “torts.” 

How can you avoid a tort action that might devastate you financially? Act like a “reasonable prudent person.” 

The “reasonable person” is a hypothetical individual who approaches every situation with the appropriate amount of caution and then acts reasonably so as to prevent causing harm to either other people or their property, directly or indirectly. In a tort suit, the court will issue a judgment against you if you failed to act as this “reasonable person” and thereby caused harm to another’s person or property. 

In every situation, ask yourself how the reasonable person would behave, and do that. Exercising consistent caution can help protect your assets by avoiding a tort suit.