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Breach

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Breach

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • June 22, 2017 at 6:29 pm #393840
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    Hi Mike!

    I have actually watched your lectures but still has some issues concerning remoteness of loss. Could you please explain to me the overall concept of it and also when it says ‘it arises naturally………. and it may be reasonably be supported…………”

    Thanks.

    June 22, 2017 at 7:34 pm #393841
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    If an auto-mechanic repairs your car and you take it away and decide that it’s still not right … so you stop it. But then can’t get it started again. Oh yes, just for a moment, the engine actually worked and you managed to drive forward 100 meters

    But then it stopped again … right in the middle of a railway track

    You look right, you look left and OH SH*T, THERE’S A TRAIN COMING!!!!!!

    So you leap out of your car, just in time to save your life

    But your car is totalled and is pushed along the track until it hits the entrance to a tunnel at which point the tunnel wins and the train is pushed off the track, down the embankment and into the canal where the train’s cargo of toxic sulphuric acid spills into the canal and destroys the local fish population. But the impact of the train on the side of the canal broke the retaining wall and the water and the dying fish poured out of the hole in the wall and into the local town washing away 4 county bridges and 15 houses including the mayor’s home

    So you claim on your insurance for the cost of the damage caused by the poor workmanship on your car … and the insurance company pursues the personal liability insurance of the car mechanic for the princely sum of $658,694,355

    Just how far could the motor mechanic have foreseen the potential consequences of his poor workmanship?

    “‘it arises naturally…” – read the case “The Wagon Mound” about the oil floating on the water across Sydney Harbour – that explains the expression ‘it arises naturally’

    “and it may be reasonably be supported…” – I don’t recognise this extract out of context

    OK?

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  • The topic ‘Breach’ is closed to new replies.

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