Legal Meaning of Duty of Care

The assignment discusses the concept of 'duty of care' in business law, specifically highlighting its legal meaning, importance, and implications for business owners. It explains that duty of care refers to a moral and legal obligation to secure the interests of others, which is established under various provisions of law. The assignment also provides steps to minimize risks regarding duty of care, emphasizing the need for business owners to take reasonable care to avoid foreseeable harm to others.

Running head: BUSINESS LAW
Business law
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Legal meaning of duty of care:
The word “duty of care” denotes certain moral as well as legal obligations to secure
the interest of some others. This term has been defined under many provisions of law. Under
the tort law, duty of care means to perform a duty in such a way to avoid the foreseeable
harm to others (Bahn and Weatherill 2013). It is regarded as one of the particulars under the law
of negligence. It is one of the most popular principles under the common law and the
principle was established in the case of Donoghue v Stevenson (1932). In Australia, certain
duty of care has been described under section 180 of the Corporation Act 2001.
Duty of care by business owner:
The term “duty of care” has been inserted under certain provisions of the common
law. It prescribes certain duties to be performed by a person to avoid any foreseeable risks. In
case of a business owner, the law requires them to exercise duties to take reasonable care
what an ordinary prudent person should have done in certain situations. Furthermore, the law
requires that a businessman should have to continue his business in a place that will be
regarded safe for the interest of the customers. It is the duty of the businessman to foresee all
the risks that can injure the interest of others. If there is any risk accrues regarding the
business, it is the duty of businessman to let the customer know about this. No step should be
taken by the businessman that goes against the public policies (Langford, Ramsay and Welsh
2015).
Steps to minimise the risks regarding duty of care:
Duty of take care is a moral principle that should have to follow by any prudent
person. In case of business, liabilities accrue regarding the business person if he failed to
perform his duties with reasonableness. Under the Tort law, duty of care depicts the civil

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liabilities to take steps to secure the interest of the customers. Under the Corporation Act, if
director of a company failed to perform his duties, he shall be held liable under section 180 of
the Corporation Act 2001. Duty of care is a part of the negligence law and relevant provisions
are mentioned under the Civil Liability Act 2003. In Donoghue v Stevenson (1932) the
provision regarding the duty of care had been established and the respondent who failed to
perform his duty properly held to pay damages to the claimant. The same principle has been
adopted in case of Ansell v Waterhouse (1817) M & S 385.

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Reference:
Bahn, S. and Weatherill, P., 2013. Qualitative social research: a risky business when it comes to
collecting ‘sensitive’data. Qualitative Research, 13(1), pp.19-35.
Langford, R.T., Ramsay, I. and Welsh, M.A., 2015. The origins of company directors' statutory duty
of care.