Claim in negligence


Assignment:

Explain whether Christina has a claim in negligence in any of the situation:

(a) While Joseph worked as an electrician for Careful Services Ltd, a company which installed electricity for local authority houses. Joseph made a mistake when wiring a house in which Christina lived and operated a successful wedding dressmaking business

The faulty wiring caused Christina to get an electric shock when she turned on her electric sewing machine. The electric shock injured Christina's hands and damaged the sewing machine. Due to the cut in electricity Tricia, Christina's assistant, could not operate the other sewing machine for the rest of the day.

(b) Christina had indicated to Costa, who was going to audit the accounts of Beauty Products Plc tha she was keen to see Beauty Products Plc prosper and might invest in it. Costa carried out the annual company audit. Christina read this report, which was impressive. She decided to invest all of her savings in shares in the company. However, the audit report had been inaccurate and the company soon went into insolvent liquidation. Christina, as a consequence made a substantial loss on her investment.

(c) Sound practices, a firm of accountants, audited the accounts of International Co-operation Plc. Christina was already a shareholder in the company but have never talked to the accountants about her financial interests. After reading the audit report and forecast she decided to increase her share holding in the company. The accountants had seriously overestimated the company's profits and potential. The company soon went into insolvent liquidation. Christiana's shares became worthless.

Support the legal reason you give in your answer with case law.

In your answer consider the different criteria in establishing the existence of legal 'duty of care' in (a), (b), and (c).

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Business Law and Ethics: Claim in negligence
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