LEGAL ASPECTS OF BUSINESS

Law of Negligence - Case



Law of Negligence - Case

Case Scenario

In this case there are two scenarios, one with the misinterpretation of the financial position and other the careless driving of the car which causes damage.

First part deals with the misinterpretation of the financial position of the company by the Holly plc which was prepared by the Mercury & Partners. They audited the value of the assets worth £8 million due to which Elvis a shareholder in Holly plc purchased more share of this company. Moreover, his wife also purchased shares after examine the audit report. Ivy PLC an another company wanted to takeover Holly PLC, asked Mercury & partner for further financial projection in order to take over, for that he purchased more shares of Holly PLC. Hence, from that time it been known that Mercury & Partners carelessly prepared the audit showing £1 million worth of assets to £8 million due to which Elvis and Dionne lost their amount in shares.

On the other side, Elvis in excitement of being rich; carelessly drove the car and hit to the bicycle ridden at speed by Edward, Kate, who was not wearing a seat belt was injured and Edward who suffers from a heart condition had heart attack by the stress of the accident.

We will discuss how the law of negligence might be applied to Elvis and Dionne's claim against Mercury, to Ivy's claim against Mercury and lastly to Edward and Kate's claim against Elvis.

Law of Negligence

Negligence is a legal concept usually used by a court to obtain damages in case of accident and injury or effects on subsequent health, and more recently for environmental harm.

Negligence is a type of tort, but can also be used in criminal law.

Negligence means conduct that is culpable because there is no legal standard to protect against third acts harmful, risky predictably, from one or more members of the company or entity. The negligent behaviour toward others opens off rights for any infringement of bodily areas, the mental well-being, property, financial status, or relations. Neglect is used in comparison of acts or omissions that are intentional or wilful. The law of negligence at common law is an aspect of liability law. The resulting damages must be proven to obtain a compensation for negligence, the nature and extent of these damages to be determined.

Components of a Negligence Action

A negligence lawsuit involves many components that must be considered before the success of the event can be determined. The proof of negligence is more complicated though it may seem.

When considering negligence, there are primary six cause of action that must be regarded and fully covered: (1) duty, (2) breach of duty, (3) causation, (4) damages, (5) and distance (6) defences. Once this was done in an appropriate award of damages can be considered.

Proximate Cause

Proximate cause lives where the plaintiff is hurt as the outcome of negligent perform, and plaintiff's wound should have been a natural and likely outcome of the negligent ...