Also known as: has reason to know · having reason to know · have reason to know · reason to know
Written by attorneys · grounded in primary & secondary sources — see below
A standard of constructive knowledge under which a party is charged with awareness of a fact when the party possesses information from which a person of reasonable intelligence would infer that the fact exists or would govern conduct on the assumption that the fact exists.
Hana Huang attended a late-night meeting with Heritage Trust representatives after consuming several drinks. Her speech was slurred and she repeatedly asked the same questions about basic terms. The representatives continued the discussion and obtained her signature on the contract. A court later finds that Heritage Trust had reason to know of her impaired condition.
Halcyon Motors leased a warehouse to Harbor Shipping. The floor contained concealed structural cracks that the landlord had discovered during prior repairs. Harbor Shipping employees later suffered injuries from a collapse. The landlord is subject to liability because it had reason to know of the risk and failed to disclose it.
Select any source to read its text and confirm it supports the definition.
Henry Hoffman granted Hyun Han permission to enter a storage yard to retrieve equipment. Hoffman later sent an email revoking that permission. Han received the email but proceeded onto the property anyway. The privilege to enter terminates once Han has reason to know of the revocation.
Helix Biotech sent a signed confirmation of an oral sale of laboratory supplies to Halcyon Motors. The document arrived within a reasonable time and listed the quantity and price. Halcyon Motors did not object within ten days. The confirmation satisfies the statute of frauds against Halcyon Motors because it had reason to know the contents.
Hannah Hale and Hazel Hoffman negotiated a supply contract using the term 'prompt delivery.' Internal notes showed each attached a different timeline to the phrase. Neither side communicated its understanding to the other. No contract forms on that term because neither party knows or has reason to know the meaning attached by the other.
Heritage Trust leased property to a tenant known to operate heavy machinery outdoors. The landlord had inspected the site and observed the equipment before transferring possession. After the transfer, a neighbor was injured by debris from the operations. The landlord faces liability because it had reason to know the activity would create an unreasonable risk.
The standard charges a party with awareness when available information would lead a reasonable person to infer the fact or to act on the assumption that the fact exists. It does not require subjective awareness of the fact itself.
No. The standard is satisfied when the party already possesses information sufficient for a reasonable inference. It does not impose an independent duty to investigate beyond what the information already indicates.
A party has reason to know when observable signs such as slurred speech, erratic behavior, or prior communications about hospitalization would alert a reasonable person that the other cannot act reasonably in the transaction.
A merchant has reason to know the contents of a confirmation when the document arrives in the ordinary course of business and contains the essential terms of the transaction. Failure to object within ten days then binds the recipient.
A landlord cannot avoid liability when prior inspections or repairs supplied information from which a reasonable landlord would infer the existence of the risk and the likelihood that the tenant would not discover it.
…who performs or induces an abortion without first obtaining the certification required by subsection (a)(4) or with knowledge or reason to know that the informed consent of the woman has not been obtained shall for the first offense be guilty of a summary offense and for each subsequent offense be guilty of a misdemeanor of the…