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Hi,
Was wondering if anyone could help me with a section B question in the Kaplan revision test.
“Charles was considering buying Olivers bar. Charles requested info from Oliver’s accountant re turnover, the accountant stated it was in the region of £200,000 and that this information was give without any responsibility on his part.
Charles subsequently bought the bar and although in several years previously turnover had once approached £200,000, generally it was about £150,000”.
I understand that the accountant owes a duty, but the answers also state the account is liable for the loss suffered, does the disclaimer not cover this?
Thanks
MichaelWhen a professional is called upon for advice and that professional KNOWS that the advice will likely be acted upon, then there is a duty of care and no disclaimer can be effective in that situation
RBS v Bannerman is a close similarity
Okay thanks, so a disclaimer would only be of use against third parties that were relying on the advice, like Barclays v Grant Thornton?
Mike is travelling all day today, so please be patient – he will answer you tomorrow 🙂
Thanks John
Fozzie, essentially you’re correct – where an opinion is given and the person giving that opinion knows (or has good reason to believe) that that opinion will be relied upon by person or persons known or unknown, then the person giving the opinion has a duty to be very careful when making their statement
Ok?
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