Business Law Research Paper 2022

Running head: 115.211 BUSINESS LAW
IRAC ON TORT OF NEGLIGENCE
Name of the Student
Name of the University
Authors Note

115.211 BUSINESS LAW1
Issue
In this paper, the issue to be discussed is whether Bart is liable for the following loss
suffered by Milhouse Bakery Ltd.:
i) $10000 for the loss of eggs;
ii) $35000 for the loss of production;
iii) $5000 for the loss of the fee for the documentary.
Law
In the case of Donoghue vs. Stevenson [1932] AC 562, the modern negligence law was
presented. Negligence involves the harm arising from a breach of responsibility leading to loss or
injury of the party to which this responsibility is to be owed. In New Zealand, the injured party
can seek compensation. For a successful negligent claim, four essential requirements must be
proved by the plaintiff which includes:
 The liable party or defendant has a duty of care towards the plaintiff;
 That duty of care has been violated by the defendant;
 The harm occurs out of this violation of duty; and
 That harm is not too far (West, 2016).
The complainant must prove that a personal injury is caused to him to establish that there
is a duty of care. The duty to take care applies to those circumstances which are recognized by
law. The defendant will need to pay damages to the plaintiff if he refuses to take care of the
injury. The Caparo test as explained in the Caparo Industries Plc vs. Dickman [1990] 2 AC
605 case shows the existence of this duty. The test consists of three steps: a rational foresight of