Part 2: Duty of care
Part 3: Loss caused by the breach
Part 4: Company act on the liability of auditor’s report, Remedies and defenses in negligence
6 Company act on the liability of auditor’s report
- According to the s507 company act 2006 it is offence for auditor to recklessly
- According to the s534 company act 2006 liability of auditor can be limited with agreement with company for whom he was giving services
- According to s532 company act 2006 provision of exempting auditors liability indemnify them against negligence in relation to provide accounts
7 Remedies and defenses in negligence
Damages can be recoverable if can be foreseeable by the defendant at the time of negligence
These some cases are the example of remedies and defenses in negligence which are described earlier
In the case of Oversea Tankship V Morts Dock and Engineering Co due to defendant’s negligence oil was spilled and accumulated around claimant‘s wharf and get fire on wharf but claim for damages cannot be successful because damage done by fire cannot be foreseeable at that time In case of Hughes V Lord Advocate defendant telephone engineers left an inspection hole covered by tent and lighted by paraffin lamps. A child fell down badly injured and claim of child‘s injury can be successful because children attracted by lights which caused injury to child
7.1 Defenses to a claim in negligence
There are following three defenses for defendants
- contributory negligence
- volenti non fit injuria
- exclusion clause
7.2 Contributory negligence
If claimant contributed to the negligence then defendant may request the court to reduce the damages rewarded by court to claimant
7.3 Volenti non fit injuria
If agreement made between claimant and defendant to exempt defendant for his negligence and awarded damages.
7.4 Exclusion clause
It is a provision within a contract to exclude or limit liability for negligence
7.5 The tort passing off
Tort passing off arises in following situations
- When business use similar names
- Misleads person that they are from same business
- If cause serious damage to that business
If tort passing of proved court may restrain business name from defendant and can also order to pay damages to claimant business