NEGLIGENT ADVICE To prove that negligence exists‚ three elements must be established. DUTY OF CARE Two factors must be established‚ relationship proximity and reasonable foreseeability. According to Hedley Byrne principle(Hedley Byrne v Heller & Co Ltd [1964] AC 465)‚ there was a relationship of circumstantial proximity between a professional financial adviser and client‚ which gave rise to Denise owing Charlie the duty of care because Charlie would rely on Denise with the intention
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2. Compare the responsibilities of internal auditor and external auditor in relation to: I. The design and operations of systems and controls Internal auditor | External auditor | Internal auditing activity is primarily directed at improving internal control. Internal auditors perform audits to evaluate whether the systems and processes are designed and operated effectively as well as providing recommendations for improvement. | External auditors may be called upon to determine if an organization
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harms of loss by third parties (not economic losses) Candler & Crane Chrismas (1951) is the next stage of development‚ where there is liability for financial loss if there is a contractual relationship‚ a fiduciary relationship or a fraud Hedley Byrne & Co Ltd vs Heller & Parties Ltd (1963) is a significant point of development‚ where there is starting to be a potential legal liability for economic losses beyond contractual relationship. In this case‚ liability is established if two conditions
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ISSUE: Did Terry commit the tort of negligent misstatement while giving advice to Kevin? RULES: The following elements must be analysed: 1. There is a special relationship between Terry and Kevin where a duty of care is owed by Terry to Kevin (Hedley Byrne v Heller ): a. Terry advised Kevin; b. The advice is of a business or serious nature; c. Terry should know that Kevin intends to rely on his advice; d. It is reasonable in the circumstances for Kevin to rely on Terry’s advice; 2. Terry breached
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“If [a banker] undertakes to advise he must exercise reasonable care and skill in giving the advice. He is under no obligation to advise‚ but if he takes upon himself to do so‚ he will incur liability if he does so negligently.” ’ House of Lords in Banbury v. Bank of Montreal[1] I. Introduction The issue of legal liability of banks in the provision of negligent advice is one doctrine of law that has evolved through the years. In light of current controversies hounding the UK banking
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views of the case and then in a later case‚ the judge can follow the view of a minority judge. This was seen in the cases of Candler Vs Crane Christmas 1951 and Hedley Byrne V Heller 1964. In the case of Candler‚ 2 judges came to the decision and the final judge opposed it. They went with the majority vote but this allowed the judge in Hedley to follow the precedent of the 3rd judge. Judges can be creative by using original precedent. This is where new law us created where there isn’t a law to follow
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Case name Case facts What it links to Rookes V Barnard Rookes sued the union officials‚ including Mr Barnard‚ the branch chairman. Rookes said that he was the victim of a tortious intimidation that had used unlawful means to induce BOAC to terminate his contract. The strike was alleged to be the unlawful means. -The case was almost immediately reversed Miliangos V George Frank Textiles George Frank Ltd was a Swiss textile producer who sold and delivered textiles to Miliangos‚ textile
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ISSUES Parties: Frank and Belinda; Marie; Douglas Pty Ltd; Black; Brown & Co Issue 1: Does any of those parties mentioned above have a duty of care to Frank and Belinda? If so‚ are they liable for a negligent misstatement for the loss of Frank and Belinda? Sub Issue 1.1: Does Marie have a duty of care to Frank and Belinda? Sub Issue 1.2: Does Douglas Pty Ltd have a duty of care to Frank and Belinda? Sub Issue 1.3: Does Black have a duty of care to Frank and Belinda? Sub Issue 1.4: Does Brown
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v Stahag Stahl und Stahlwarenhandelgesellschaft mbH [1983] 2 AC 34 Acceptance by instantaneous communication is effective when it arrives Page 1 of 3 17. Dickinson v Dodds (1876) 2 Ch D 463 Revocation by a third party – reliable source 18. Byrne & Co v Van Tienhoven &
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TATIANA MOLODCHIKOVA S42724155 ACCT 7103 TOPIC 1 (THIRD PARTY LIABILITY) WORD COUNT 3000 The liability of auditors to third parties has been the subject of much litigation. Litigation claims against accountancy firms have increased dramatically in the last thirty years. Previously‚ such cases were rare and were viewed with great interest. Nowadays‚ whereas still treated with great interest they are becoming all kind
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