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Forums › ACCA Forums › ACCA LW Corporate and Business Law Forums › public policy
Dear All,
please clarify in respect of tort of negligence, in particular duty of care.
In Caparo Industries v Dickman House of lords established 3 criteria that must be satisfied for the maker of the statement to owe duty of care to the recepient:
1) it must be resonably foreseeable that th statement will be relied upon by such persons as the claimant
2) theremust be proximity, i.e. close & direct relationsbtw the maker the recepient.
There will be if the statement is made to known person, for a know purpose and it will be used for that purpose
3) in all circustances it must be just and reasonable to impose duty of care, e.g. it must not be contrary to public policy to impose duty of care
SO EXPLAIN WHAT PUBLIC POLICY IS?
Thank you for your advice & time
I suppose it is saying that it is unconscionable to hold an auditor liable to an indeterminate group of people for an indeterminate amount for an indeterminate period of time ( I believe that that’s what the judge said in the case Ultramares Corporation v Touche )
