Negligent Misstatement
INTRODUCTION Law of tort dominates civil conduct in all aspects of life and numerous of violations of duties are all distinctly set. It provides remedies for certain civil wrongs that have not been arisen from the contractual duties. Under tort law, whether it is an intentional act or accident, the injured victim (plaintiff) may be capable to recover damages from the person that liable for the harmed caused (defendant). Negligence is the most significant and developed category of tort in terms of money and varied of cases involved. It believes that the plaintiff should bear their own adversities unless there is a proof shows that the defendant owes of duty to comply with ordinary care and skill. There are few elements have to be shown if the claimant wish to succeed in compensation which is the existence and breach of a duty of care, losses or damages must be resulted from the reliance on that breach, and lastly is to determine whether the losses were an equitably foreseeable consequence of the defendant’s actions.
CONTENTS Negligent misstatement refers to a representation of fact that been carelessly made, which is relied on the plaintiff to their advantages (O’Riordan, 2007, p.1). In 1964, the tort of negligent misstatement has been established and it has gained more recognition in this decades. It covers opinions and reality statements made by negligence. However, the tort had lead to certain level of floodgate concerns in the early century and today the courts are still less well embrace its liability. In the present day setup, accountants have been regarded as prominence role. They inspect mistreats and irregularities of the company’s financial aspects and protect the benefits of the stakeholders and investors. When the accountants or auditors form a contractual relationship with their potential clients, there are many debatable legal area emerge in respect of the people who possible rely on the company reports made or advices provided in a non
CONTENTS Negligent misstatement refers to a representation of fact that been carelessly made, which is relied on the plaintiff to their advantages (O’Riordan, 2007, p.1). In 1964, the tort of negligent misstatement has been established and it has gained more recognition in this decades. It covers opinions and reality statements made by negligence. However, the tort had lead to certain level of floodgate concerns in the early century and today the courts are still less well embrace its liability. In the present day setup, accountants have been regarded as prominence role. They inspect mistreats and irregularities of the company’s financial aspects and protect the benefits of the stakeholders and investors. When the accountants or auditors form a contractual relationship with their potential clients, there are many debatable legal area emerge in respect of the people who possible rely on the company reports made or advices provided in a non
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