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CONTRACT LAW

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › CONTRACT LAW

  • This topic has 5 replies, 2 voices, and was last updated 3 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • July 14, 2022 at 12:41 am #660437
    Eunice03
    Participant
    • Topics: 88
    • Replies: 70
    • ☆☆

    Which of the following could constitute a “special relationship” for the purposes of
    negligent misstatement?
    A Parent and (adult) child
    B Environmental health inspector and hotelier
    C Banker and client
    D Husband and wife

    ANS- B
    Good day sir,I don’t understand why the answer is B. Please can you explain

    July 14, 2022 at 8:21 am #660443
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Hi Eunice

    I was expecting a question from you concerning notice periods for special notice resolutions! But I assume that that query is now answered?

    Re special relationships in the context of negligent misstatements, I can give you this:

    A special relationship exists where a professional person advises a known person who relies on the statement for a known purpose. For an action in negligent misstatement to succeed there must be a special relationship

    That statement gets rid of options A and D

    But what about C? Having just finished reading an extensive (excellent) blog by Herbert Smith Freehills (https://hsfnotes.com/bankinglitigation/tag/negligent-mis-statement/), it appears to me that a special relationship exists between a banker and the customer (and therefore liability for negligent misstatement) only in the context of giving advice whereas, in the ‘normal’ situation of a banker / customer – that of a debtor / creditor – there is no such special relationship

    This is a volatile area of English Law and is currently being assessed as to whether the extent of liability should be increased or, at least, reviewed and made more certain

    I have to admit that I would not have liked to be faced with this question myself in an exam so I’m not sure that this has helped you sufficiently

    Well?

    July 14, 2022 at 5:00 pm #660504
    Eunice03
    Participant
    • Topics: 88
    • Replies: 70
    • ☆☆

    The query as been answered sir.
    Your explanation has helped but I’m still confused on how an environmental health inspector would owe an hotelier a duty of care.

    July 14, 2022 at 7:19 pm #660515
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Because an environmental health officer is monitoring the performance of hotels to ensure that the services provided by the hotels are in line with health and safety, at least minimum, standards

    OK?

    July 14, 2022 at 8:34 pm #660524
    Eunice03
    Participant
    • Topics: 88
    • Replies: 70
    • ☆☆

    Thank you sir

    July 14, 2022 at 10:02 pm #660531
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
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