Free Essay

Duty of Care Example

In: Business and Management

Submitted By evilpeanut
Words 2068
Pages 9
Assignment 1: Patrick & Mary v Don
1. Issue
This incident revolves around 3 parties where Patrick and Mary are the investors of a company called Kill Cancer Pty Ltd, particularly for an up and coming drug named “Miracle”. They are the plaintiff in this case. The defendant is Don, who is a financial adviser by profession and a friend of Patrick.
This case involves action taken by the plaintiff due to the advice given by the defendant, and as such it is a case for the tort of negligent misstatement. It is not a fraudulent misrepresentation because the defendant did not make any false statement or aseems to have decent in mind.
2. Rule

2.1 Step 1: Duty of care
The very first rule to establish is whether the defendant, Don, owes a duty of care to the plaintiff, Patrick and Mary. Following the case of Donoghue v Stevenson (1932) , it is clear that the duty of care is not dependent on whether a contract exists, which there is none between Patrick and Don or Mary and Don. It is very much dependent on these things:
a) A duty of care can be owned when giving advice/supplying information
The defendant, Don, ought to know that while dispelling information that has crucial implications, he is being trusted to give the best kind of advice to the other party (L Shaddock and Associates Pty Ltd v Parramatta City Council, 1981) . The principals of this case states that whenever a person gives information or advice to another upon a serious matter in circumstances where the speaker realises, or ought to realise, that he is being trusted to give the best of his information or advice as a basis for action on the part of the other party and it is reasonable in the circumstances for the other party to act on the information or advice, the speaker comes under a duty to exercise reasonable care in the provision of the information or advice he chooses to give. It is reasonable to conclude that the other party will act on such advice and as such Don owes a duty of care through the provision of his advice.
b) The representee must reasonably rely on the advice or information
It is critical not only that the plaintiff relied on the defendant’s advice or information, but also that the reliance was reasonable in all the circumstances.
Since Patrick was an ambitious young businessman who was looking for a high return investment, any advice given to Patrick which included a high return of investment by an experienced financial advisor would be taken into much consideration by Patrick.
Furthermore, Don said to Patrick that if the drugs were to reach the market, the value of shares would rise 15 times which is from $10 to $150 or even more.
Thus, due to Don’s profession as a financial advisor, any advice given by Don is reasonable for Patrick to act upon the advice or information. This is clear as in the case of EssoPetroleum Co Ltd v Mardon (1976) where professional advisers owe a duty in taking reasonable care while providing information.
c) Spectre of indeterminacy
The spectre of indeterminacy pertains to advices provided not under the request of the plaintiff. The issue of duty here lies in the reasonableness of the plaintiff’s reliance. Since the information provided by the defendant was in fact told to him for the purpose of inducing the representee to act in a certain way, that is to say to inform of the potential of the new drug so that Patrick will consider investing in it, there is a duty of care owed to Patrick. This is highlighted by McHugh J (Esanda Finance Corporation Ltd v Peat Marwick Hungerfords, 1997) where the liability of economic loss consist of a statement where there is an intention to induce the recipient to act on it. From the case, it is obvious that Don wishes Patrick to invest in the drug as it was stated that Don advised Patrick.
Thus from the points listed above, Don owes a duty of care to Patrick.

2.2 Duty of care to Mary
The issue on whether Don owes a duty of care to Mary is a more difficult one to ascertain. The defendant can argue that the advice was offered solely to Patrick and hence any losses sustained by parties other than Patrick would matter not to Don as he owes no duty of care to them. In fact, should the event arises where Patrick tells of this investment to a large group of people and they all acted upon it, it is very improbable for the defendant to pay all of these people for these losses.
The treatment to this question hinges on how closely related the third party is to the second party as well as the issue of remoteness. Mary in this case suffers as a third party, and the fact remains that she acted on the information provided by Don. Following the verdict of Bill v Van Erp (1997) , there are considerable implications for professionals like bankers and accountants such as Don when it comes to affecting third parties. It can be said that Patrick informing Mary of what was discussed between him and Don is reasonably foreseeable, as such the negligent misrepresentation can be taken to task by the third party Mary.
2.2 Step 2 : Standard of care
After being certain that the defendant owes a duty of care, it is necessary for the plaintiff to prove that Don failed to exercise the proper standard of care.
The general principles on to determine whether the defendant has exercised the required level of care are set out in statute. Under the civil Liability Act , a person is not negligent in failing to take precautions against a risk of harm unless the risk was foreseeable and not insignificant.
The risk of losses incurred through the investment is no doubt very much foreseeable. Don himself made remarks of the potential pitfalls should the drug fail to take off. Following that argument, as Don warns of potential losses, it must had been of significant value or else he would not had list it as “risky”.
Secondly, the ‘reasonable person’ test can also be used to provide a clearer standard, by which a reasonable person is someone who would have taken precautions against certain harm, considering that the probability of the harm that would occur if the care were not taken, the likely seriousness of the harm, the burden of taking precautions to avoid the harm as well as the social utility of the activity that creates the risk of harm.
Judging by the flippant manner of how the advice was thrown towards Patrick, it is clear that a reasonable person would have said it was not done fulfilling the proper standard of care. Knowing that the losses could be great, Don should had use specific numbers to coach Patrick and how he can invest in the company. Don could had done it easily, as such there is little burden in fulfilling this duty.
A person providing professional services is to be taken to have exercised reasonable care if it is established that the person acted in a manner that (at the time the service was provided) was widely accepted in Australia by a significant number of respected practitioners in the field (peer professional opinion).
The standard of care owed therefore by Don is heavily weighted by his profession. The advice offered by the defendant is a peer professional opinion in line of the job scope of Don, as such a certain standard of care is expected (Wyong Shire Council v Shirt, 1980) . Such standard of care depends on the precautions taken by Don to warn of the risk of harm involved while acting on his advice. From the case study, the only warning of potential harm exist in a few statements by which Don said that “it might not hit the market and it is a risky investment” but he then quickly turned the focus back to the “amazing returns” that entails with success. There was no contract or bill involved through the exchange of privilege information which would have outlined the potential risk spelled out for Patrick to know what is in stored for him.
Furthermore, Don only highlighted the potential returns, which was 15-fold, but failed to brief on what sort of losses the investment would entail, which was later seen to be 10-fold. Patrick also informed that he was going to act on this advice, through the purchasing of a “large number of shares in Kill Cancer”, making it clear that Don owes a duty of care but did not fulfil the standard of care owed to him. 2.3 Step 2 : Remoteness of Damage
Since a duty of care is established and the defendant has failed to meet the necessary standard of care, he is liable for the damage caused by the breach, provided that the damage is not too remote (Kenny & Good Pty Ltd v MGICA, 1992) . In this case study, the compensation of losses incurred through the falling of share is not remote. It is foreseeable that should the drug fail to hit the market, as acknowledged by Don, the share prices are bound to fall.
3. Possible defences
A possible defence that will be attempted by the defendant is firstly, as mentioned above, Don would argue that no duty of care is owed to Mary. It might even be the case where Don has never met Mary in person, much less owe a duty of care to her. The response to this is that third party implications must be considered when professional advice is given, as seen in Bill v Van Erp (1997) .
A second possible defence is the remoteness of damages. What is foreseeable is the decrement of value in the shares should the product fail. The defendant can argue that the amount invested by Patrick and Mary on the other hand, is not foreseeable. Don might not be able to anticipate the large amount of money placed in the investment, which eventually led to high losses. This can be countered by the knowledge of risk appetite of Patrick held by Don. Patrick specifically mentioned that he was not “adverse” to taking calculated risk, indicating that should the risk be properly managed, he is not afraid to commit large sums of money, which Patrick later mentioned that he will be purchasing “a large amount” of shares. Don thus cannot say that he is not aware of the potential amount of money that will be invested by Patrick. Another possible defence would like in the standard of care owed by Don. In this case, the losses are purely economic, and as such more rules or test can be used to measure how responsible the defendant was when the plaintiff incurred the losses. As seen in Perre v Apand Pty Ltd (1999) , a heavy portion of the ruling lies on how vulnerable the plaintiff is. The defendant can argue using the ‘salient features test’ that the plaintiff should had done more research into his investment and sought more legal advices instead of basing his decision solely on one opinion. This is coupled by the fact that information is not withheld and the defendant, Don, is by no means the only source of information. For this argument, the plaintiff may be at the losing end as the decision to invest was made freely by Patrick as well as Mary, and hence they voluntarily assumed the risk of sustaining losses (Agar v Hyde, 2000) .
4. Conclusion
In conclusion, the defendant, Don, should stand liable towards his negligent misrepresentation, as he owed a duty of care towards the plaintiff as well as the third party involved Patrick and Mary and he had breached the duty of care owed to them.
However it is unreasonable and unlikely that the ruling towards the damages paid out to be the full sum of economic losses sustained by Patrick and Mary, a total of $1,800,000. This is because the plaintiff also failed to take reasonable care in their act of investing and thus they voluntarily took up the risk of possible losses. Thus compensation will be paid out, but it would be a portion of the full sum lost.

Similar Documents

Premium Essay


...responsible for the agent's actions. For example, an employer of an employee who injures someone through negligence while in the scope of employment is vicariously liable for damages to the injured person. In contrast, a defendant who engages an independent contractor is not liable to others for the acts or omissions of the independent contractor. An independent contractor is a person who performs services for another person under an express or implied agreement and who is not subject to the other's control, or right to control, over the manner and means of performing the services. Various Liability Vicarious liability is a legal doctrine that assigns liability for an injury to a person who did not cause the injury but who has a particular legal relationship to the person who did act negligently. It is also referred to as imputed Negligence. Legal relationships that can lead to imputed negligence include the relationship between parent and child, Husband and Wife, owner of a vehicle and driver, and employer and employee. Ordinarily the independent negligence of one person is not imputable to another person. Other theories of liability that are premised on imputed negligence include the Respondeat Superior doctrine and the family car doctrine. The doctrine of respondeat superior (Latin for "let the master answer") is based on the employer-employee relationship. The doctrine makes the employer responsible for a lack of care on the part of an employee in...

Words: 1248 - Pages: 5

Premium Essay

Legal and Ethical Duties

...Week#7 MSAC 601 Legal and Ethical Duties of Care Due: Monday, April 20th, 2014 CPMR   Abstract This paper addresses the duty of care, duty of loyalty, and ethics of care issues that arise in the workplace. It outlines the nature and scope of care that employers are ethically obligated to give their employees. Characteristics of duty, and how it can be implemented are provided, along with how to deal with issues that arise.   Duty of care is the principle that directors and officers of a corporation have in making all decisions in their capacities as corporate fiduciaries, who must act in the same manner as a reasonably prudent person in their position would (Cornell, 2015). Duty of care is considered a business judgment rule which is met as long as the fiduciary executed a reasonably informed, rational judgment in good faith, that didn’t occur with a conflict of interest. A court needs to be able to agree with the business judgment or the plaintiff needs to be able to adequately prove that the standard was not met. Even if the plaintiff can show that the standard was not met, as long as the defendant fiduciary can prove that a fair process was used and a fair outcome resulted from the decision then they can still meet their duty of care. Duty of loyalty is the principle that directors and officers of a corporation take in making all decisions in their capacities as corporate fiduciaries and must act without personal economic conflict (Cornell, 2015). This......

Words: 1576 - Pages: 7

Premium Essay

Should a Business Have Civil Liability for the Criminal Acts of Its Employees?

...superior are two large factors in businesses being liable for their employees, and it is vital to understand what does and doesn’t fall under these doctrines. Businesses have a duty of care to hire, train, supervise, and retain employees that are responsible and ethical members of society; if an employee commits a criminal act while representing the business, then the employer has breached its duty of care. Employees represent the business they work for, and a business reaps benefits of its employees as far as sales and goodwill are considered, therefore the business should be held responsible for its employee’s acts because the employee is acting on behalf of the business (“Defining an employer’s duty of care,” n.d.). There are a few key reasons that a business should have civil liability for the criminal acts of its employees. Imposing liability on a business may give it an incentive to invest in higher standards for hiring, supervision, and retention of its employees to prevent these crimes from occurring. From a firm’s standpoint, it is much more favorable investing in the hiring and training of employees rather than paying for legal fees resulting from a lawsuit. Additionally, liability on a business-level has an added benefit of allowing the government to simply penalize the firm for breach of duty of care instead of investing its resources into monitoring every company’s hiring and retention decision individually (Fischel, 1996). Vicarious liability is a theory......

Words: 1308 - Pages: 6

Premium Essay

Hsa515 relationships. The doctor and patient relationship has been and remains a keystone of care. The medium will provide data that is gathered for the society. The data is diagnoses and plans are made. The compliance will be accomplished, and healing, patient activation, and support are provided. It will manage care organizations. The importance rests also on market savvy: satisfaction with the doctor patient relationship is a critical factor in people's decisions to join and stay with a specific company. The quick penetration of managed care into the health care market raises concern for many patients, practitioners, and scholars about the effects that different financial and organizational features might have on the doctor and patient relationship. For an example, they represent a blatant backlash on the part of providers against the perceived or feared deleterious effects of the corporation of health care practices. A person requires someone they can respect. An individual requires a person they can respect ( 2. Determine how contract principle and breach of warranty apply to the health care setting. New and presumably better orthopedic implants are introduced to surgeons on a frequent basis. Pioneer surgeons will partner with manufacturers to develop new products and services. For an example, metal-on-metal hip joints were promoted as the choice for younger and active patients. Now some surgeons......

Words: 1043 - Pages: 5

Free Essay

Unit 22 M1

...Unit 22: Q1) explain with examples from the case above whether a duty of care existed between the businesses mentioned and their victims. A1) there were some duty of care between the bread business and the customer. The premier foods spokesman said, “We apologise profusely for the distress caused as a result of the isolated incident.” They also said, “as soon as this complaint was made we stopped all bakery production at that site and appointed an independent specialist contractor to conduct thorough investigation.” This shows us that there is a duty of care between the business and the customer as they understand the mistake they have made and investigated further into the premises where the bread was made. Ronald Lim, also the owner of a Chinese restaurant almost served a sweet and sour sauce which had a mouse in the bowl and had been fined £30,000. This shows that the duty of care on the customers of the Chinese restaurant was not shown. Q2) explain with evidence which suggests that the duty of care owed by these businesses were breached? A2) the evidence which shows that the duty of care was breached by these businesses are that they failed to proceed with any quality checks on their products. If their checks had been completed thoroughly there would not have been bread or sweet and sour sauce with mouse’s in it. If this had also been completed the two businesses wouldn’t have found themselves in this situation of paying fines and affecting their reputation. Q3) were...

Words: 362 - Pages: 2

Premium Essay

Nursing Law

...Nursing Law Duty of care: This can be defined as duty that healthcare professionals owe their client in order to avoid unreasonable risk of harm to patients receiving nursing care under them. Duty of care is expected where a person is responsible for the care of others. A nurse has a legal duty to be careful when nursing a patient If a health care professional is careless in his or her nursing practice, this is known as breach of duty of care and such professional can be held liable for such act or omission. Negligence: Negligence can be defined as an actionable harm caused to other people under one’s care. As an example, if a nurse was negligent in administering an incorrect dose of a medication; which might result in a patient sustaining injury. This means that the nurse responsible fell below standard of care expected of them. Consent: Is a legal obligation that is required from all persons who are in the care and treatment of a patient, before initiating any procedure or treatment. As a broad principle, obtaining the consent of a person prior to undertaking a procedure or treatment is respectful and therefore, should be attended to as a matter of course by all health professionals. For example, a patient has a legally enforceable right not to be touched by health care worker without a valid consent. Hence, for consent to be valid, it must: * Be informed, * Cover the actual procedure, * Be voluntarily given by the client, and * Be obtained by a......

Words: 533 - Pages: 3

Premium Essay

Law and Healthcare, they usually think of medical practice, a form of negligence. Negligence by definition is known as one of the most common type of malpractice that exists in the healthcare industry. However, in order for a negligence case to be proven, four elements are necessary: Duty of Care, Breach of that duty, Injury and Causation, (J. W. Showalter, 2007). The first element, duty of care, requires all persons to conduct themselves as a reasonably prudent person would do similar circumstances. Generally, duty of care is a legal notion that states that people owe anyone around them or anyone who could be around them a duty to no to place them in situations of undue risk of harm. For example, physicians have a duty to protect patients from foreseeable dangers that could lead to any injury. In case of a surgery, they have a duty to make sure all equipment are in good condition, so it does not lead to injury while the procedure is done. They also have a duty to take preventive measures which create a safer environment. The second element, breach of that duty, requires expert testimony, which normally comes from the defendant’s fellow practitioners because they know the standards of practice best. For example, a specialist may testify about the standards for general practitioners if she is knowledgeable about them. Similarly, if the issue concerns the standards for doctors of osteopathy, doctors of medicine can testify, although the school rule prohibits the imposition of......

Words: 2051 - Pages: 9

Premium Essay

Business Law

...Contents Question 1 1 Duty of Care 1 The Standard of care 3 Damages 4 Causation 5 Question 2 6 Question 3 8 Truth or Justification 8 Privilege 8 Absolute Privilege 8 Qualified Privilege 8 Honest Opinion / Fair Comment 9 Apology 9 Offer to make amends 9 Consent 9 Fair and reasonable publication on the matter of public interest 9 Question 1 Under the tort of negligence there are a number of factors that must exist in order to establish negligence. Firstly, there must be a duty of care to protect others against reasonable foreseeable harm or loss. Secondly, there must be a breach of that duty. Thirdly, there must be loss or damage to the plaintiff and finally, there must be a causal link between the breach of duty of care and the loss or damage suffered. Duty of Care Duty of care refers to the relationship which the law recognises as giving rise to a legal duty to take care. A duty of care is a responsibility to take such care and breach of this can lead to the defendant being liable to pay damages to a party who has suffered losses or injury as a result of their breach of care. Therefore it is important for the claimant to establish that the defendant owed them a duty of care. In this case study Donoghue v Stevenson (1932), the duty of reasonable care was established. Mrs Donoghue went to a cafe with a friend. The friend brought her a bottle of ginger beer and an ice cream. The ginger beer came in an opaque bottle so that the contents......

Words: 3182 - Pages: 13

Premium Essay

Aspects of Contract and Negligence for Business

...Scenario 2: Negligence and Vicarious Liability Problem Question (P3.1, P3.2, P3.3, P4.1, P4.2 and M3) Task description: Imagine that you are an In-House Lawyer (IHL) working for QuickFix. The Managing Director (MD) has asked you for written advice on whether the company has any liability in tort law towards Barbara and Clive. With this in mind please produce a report for the MD, which sets out the law relating to negligence and vicarious liability and how it applies to this scenario. Your report should be no longer than 3,000 words. 1 Differences Between Liability in Tort and Contractual Liability Contractual liability concentrates on what is in a contract and the obligations between the two or more parties of the contract. Both parties in contractual liability contracts are controlled by it and the terms stated in the contract cannot be broken. The terms of a contract must be fulfilled by both of the parties; otherwise consequences will follow if one party breaks the terms. Contractual liability contains conducting agreement and liability between businessperson and merchant. Tort law is used in situations where a person has done harm to another person. Liability varies significantly in tort law and contractual law in terms of issues of content. Contractual liability is based on agreement but tort law’s liability is not based on agreement. Also the way court provides compensations and how it deals with these two reflects on the difference between......

Words: 2229 - Pages: 9

Premium Essay

Civil Liability Unit 4

...damages as a form of redress. Negligence is the failure to exercise the required amount of care to prevent injury to others. For example, if you cause an accident that injures someone or damages their vehicle because you were driving at an unsafe speed, then you could be sued for negligence. In some cases, the law imposes absolute liability (aka strict liability) on specific parties without regard to fault, and, therefore, obviates the need to prove fault in court. For instance, manufacturers are held strictly liable for defective products that they manufacture. Sometimes, the law designates other parties as being responsible, whether they are or not. Imputed negligence results in vicarious liability, where the principal is responsible for the acts of his agents. For example, employers have vicarious liability for the actions of their employees Most cases of negligence cannot be determined absolutely, for it depends on many factors. The main measure used to determine whether an act was negligent is to consider what a reasonably prudent person would do, given the age and knowledge of the tortfeasor, and other relevant factors. Requirements for liability in the law of negligence Before a court will award damages, the presumed negligence must satisfy 4 requirements: 1. there must be a legal duty to perform or to use reasonable care; 2. there must have been a failure to perform that duty; 3. the plaintiff must have suffered an injury or a loss; 4. and the negligent act......

Words: 1710 - Pages: 7

Premium Essay

Business Law a civil wrong or wrongful act, whether intentional or accidentally which unfairly causes someone to suffer loss or harm from another party and this is lead to action to civil court. There are two ways to occur in civil liability which is either a breach of contract or a tort having been committed. Liability of tort is not undertaken voluntarily and its’ applied by the courts on the basis that certain types of conduct ensure the imposition of tortious liability. Examples of tort situations are negligence, nuisance, trespassing, defamation, occupiers’ and vicarious liabilities. In Soo’s case, emphasis is given to law of negligence. In Soo’s case, she can claim under the negligence from Tesko. Negligence always required some form of careless conduct. Based on the fact given there is an extent of careless conduct by Tesko. In order for Soo to successfully sue Tesko for her claim there are three elements that need to be established. The first element is there must be an existence of duty by Tesko, breach of that duty and the causation and that the damages are not too remote. Based on the first element, the fact related which is Donoghue v Stevenson [1932] AC 562 House of Lord [1]. This case was happens on 26th August 1928, Donoghue and her friend went to a café in Glasgow and her friend brought a bottle of ginger beer for Donoghue. The ginger beer was in a brown and opaque bottle so that the contents could not be seen. Donoghue poured half the contents and also......

Words: 2479 - Pages: 10

Premium Essay

Tort Law Homework

...NEGLIGENCE Tort Law is a field that encompasses material of considerable breadth and diversity and whose existence, as a reflected in individual actions seeking civil redress for injuries nor arising out of contractual relations can be traced can be traced back to primitive societies. (White, 2003 p.23) A ‘tort’ is a Norman word for a ‘wrong’ but ‘torts’ have typically been distinguished from crimes and from ‘wrongs’ identified with contractual relations. Tort Law is concerned with civil wrongs not arising from contracts. We can see the shifting character of Tort Law in nineteenth and twentieth century America as deriving from the shifting ideas of legal scholars and judges particularly ideas about the civil responsibilities of a person to his or her neighbors in society and about the manner in which society should respond to injuries and injured people. An independent identity for Torts late in the nineteenth century is the affection of tort doctrines, especially negligence, to the problems produced by industrialization. Industrialization has played a part in creating the climate of intellectual legal opinion and it affected torts as an independent category of law. Some certain lawyer-intellectuals in the development of legal doctrine in America, who were academicians after 1870, significantly affected the content of tort rules and doctrines and also affected the changing state of tort law in America. There are many categories of Torts. It...

Words: 1851 - Pages: 8

Premium Essay

Pdf Document

...4 Negligence: duty of care Learning objectives At the end of this chapter you should be able to: • have an overview of the history of negligence; • describe the function of duty of care in negligence; • appreciate the way duty of care has been defined and developed; and • apply the principles of duty of care in the areas of omissions and liability of public bodies. 04-Bermin-Chap04.indd 42 2/6/2008 7:39:32 PM 4.1 Introduction Negligence began to be recognised as a tort in its own right around the beginning of the nineteenth century. Before that time, the dominating action for personal injury was the writ of trespass. Trespass was initially concerned only with direct acts, however, during the nineteenth century the focus shifted to the distinction between intentional wrongs (trespass) and the unintentional (negligence). As we have seen, negligence was originally described in terms of a duty imposed by law and thus it will be seen that duty is one of the three key elements of negligence today. Negligence evolved as a means of loss-shifting at a time when there was little or no insurance or state welfare provision. The industrial revolution in the nineteenth century brought with it increased risks of injury to those working in factories, mines, quarries, and other dangerous situations. The development of railway transportation and mass production dramatically increased the potential for many people to be affected by the faulty conduct of strangers, at the same......

Words: 15172 - Pages: 61

Premium Essay

Company Act

...1965 and the duties their roles and duties as Company Directors. According to section 122 (1) every company shall have at least two directors, who each has his principal or only place of residence within Malaysia. So they follow the provision of section 122(1) which is mention about at least 2 directors and both of them are the directors of the company. For their duties, according to the law they are two types of duties of director, duties of care, skill and diligence and fiduciary duties. In this case does not show both Encik Zayed and Puan Hashimah take an effort to know his right and obligations in the company it’s been prove by statement they are not very familiar with the company act. Encik Zayed shows his duty care by delegate his power and trust to cik Amy a new finance executive to perform a work related to company financial. Other duties that on duties of care, skill and diligence are duty of skill which is directors are not necessary to be a skill person and members cannot complain about the unskillful of directors. Next is duty to be diligent, directors must exercise reasonable diligence in performing their tasks. Next are fiduciary duties, which is mean that director must exercise in the interests of the company and for the proper corporate purposes. Directors must benefit others that depend on him. In this case Encik Zayed does not show his fiduciary duty when he makes a decision that may not benefits his company. For example, Encik Zayed does not care or......

Words: 520 - Pages: 3

Premium Essay

Common Law

...unintentional tort. Negligent torts are actions that violated the standard duty of care that caused an unexpected or unintended injury to a person. In negligent tort claims, there are four elements that must be proven by the claimant: a duty to care, the breach of duty, consequential harm, and legal causation or remoteness. * Duty to care: Everyone has a legal duty of care to all. This means that a person shouldn’t do anything reckless that may result to the harm of another. For example, a doctor has a duty to care for his patients by giving them the right treatment and prescribing the appropriate and safe medication. Duty of care in Donaghue -v- Stevenson 1932 was defined as exercising such care as is due in such 'acts or omissions which you can reasonably foresee would be likely to injure persons so directly affected that you ought reasonably to have them in contemplation' and Caparo Industries -v- Dickman 1990 referred also to situations in which it would be fair, just, and reasonable to impose. * Breach of duty: The breach of duty happens when a person fails to exercise a reasonable standard of care to another. He may have intentionally or unintentionally exposed someone to a dangerous situation that poses threat and results to damage. Breach of duty is not limited to professionals or persons under written or oral contract; all members of society have a duty to exercise reasonable care toward others and their property. A person, who engages in activities......

Words: 874 - Pages: 4