ISSUES
Is Bob liable to Mary and to what extent?
Does Bob have any defenses?
Is Tom liable to Sam and to what extent?
LAW In this case we are dealing with tort law and more specifically negligence in tort law.
Negligence in tort law requires the plaintiff to prove the following: * The defendant owed a duty to the plaintiff (or a duty to the general public, including the plaintiff); * The defendant violated that duty; * As a result of the defendant 's violation of that duty, the plaintiff suffered injury; * The injury was a reasonably foreseeable consequence of the defendant 's action or inaction. http://www.expertlaw.com/library/personal_injury/negligence.html Negligence liability normally rests with the party that owes a duty of care. If there has been a breach of this duty, which has resulted in financial loss, personal injury or otherwise, then the negligent party may be liable to pay compensation to the innocent party. The defendant must be proved to have owed the plaintiff a duty of care ( Donoghue v Stevenson). For example it is well established that drivers owe a duty of care to other road users.
The defendant must also be shown to
References: Latimer. P. (2012) . Australian business law (31 ed.) Australia, MA: CCH a Wolters Kluwer business Australian Government (2012,March 21) . Attorney-Governal’s Department . Australian contract law. Retrieved from; http://www.ag.gov.au/Consultationsreformsandreviews/Pages/Review-of-Australian-Contract-Law.aspx Stwart, P. , & Stuhmake, A. (2005) . Australian principles of tort law. Sydney, MA: Cavendish publishing Ltd Clarke, J. (2010) Australian contract law: Agreement Received from: http://www.australiancontractlaw.com/law/formation-consideration.html