Newman Tours Ltd v Ranier Investments Ltd

Running head: LAW OF BUSINESS OBLIGATIONS
LAW OF BUSINESS OBLIGATIONS
Name of Student
Name of University
Author Note

1LAW OF BUSINESS OBLIGATIONS
Table of Contents
Question 4........................................................................................................................................2
Issue.............................................................................................................................................2
Law..............................................................................................................................................2
Application..................................................................................................................................2
Conclusion...................................................................................................................................2
Question 5........................................................................................................................................3
Issue.............................................................................................................................................3
Law..............................................................................................................................................3
Application..................................................................................................................................3
Conclusion...................................................................................................................................4
Reference.........................................................................................................................................5

2LAW OF BUSINESS OBLIGATIONS
Question 4
Issue
The main issue in this case is whether IRL would succeed in a negligence claim against
Cautious Accounting.
Law
The elements for a successful negligence claim were seen to be discussed in Sherwin
Chan & Walshe Limited (In Liquidation) & Another v/s Sir Robert Jones & Another [2012]
where the defendant was held liable for the breach of professional duty in negligence by giving
wrongful advice to the client and was given a penalty for the payment of the damages incurred.
Application
Applying the judgment of the case Sherwin Chan & Walshe Limited (In Liquidation) &
Another v/s Sir Robert Jones & Another [2012] in the current scenario it can be seen that a
similar situation had been faced by International Resources Ltd (IRL) when Cautious Accounting
gave them wrongful opinion even after getting all the necessary documents. Taking initiative by
relying on the opinion of Cautious Accounting, IRL was seen to be suffering from major trouble.
IRL can claim for the compensation of damages incurred by them because of the breach of duty
of care by Cautious Accounting.