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Business Law - Essay Example

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The possible issue that requires discussion in this question are the law of negligence, to be precise the negligent statement that had resulted by the actions of Bumble & Co. in preparing the financial statement. The possible claim by Peter and Alison in respect of such…
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Business Law
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Business Law

Download file to see previous pages... Each issue in the current question requires an analysis of the elements and so each of these will be discussed in turn, with respect to each question.
The definition of law of negligence is said to be the of conduct which tends to fall below the standard that has been established by law so as to protect others against any unreasonable risk of harm. The landmark decision in which the doctrine of negligence was developed was Donoghue v. Stevenson1 and in particular Lord Atkin’s formulation is till today said to be the benchmark. The material facts of the case were that Donoghue who consume a ginger beer found a decomposed snail in the bottle and claimed negligence against Setevenson. The basic contention was that a duty of care was owed by the manufacture to the person who used or consumed what had been produced and so an act of negligence had been committed when the person who consumed or used the product was injured, even though the bottle in this particular case had been purchased from a retailer. Therefore since the injury had been caused to the final consumer it was contended that whether the beer was purchased from the manufacturer. Thus it was contended that the manufacturer should be held liable to the final consumer as duty was owed by him in the current situation and he was negligent in respect of the duty that he owed. Even though the case was settled out of court the court found all the elements to be present and stated that there had been negligence on part of the manufacturer. The main establishment in this case was the neighbor principle.Thus the case stated that a person must take reasonable care so as to avoid acts or omissions which if seen with reasonable foreseeability are likely to cause an injury to that person’s neighbour. Lord Atkin found a neighbour to be a person who would be so closely and directly affected by the act that he should have been contemplated of when doing the ...Download file to see next pagesRead More
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