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Hello sir, hope you are doing good.. Could you please help me with this KAPLAN MTQ,
Oliver was selling his inn, and Charles was consider in buying it. Charles wrote to oliver’s accountant and requested annual turnover of the inn, The accountant wrote to charles informing him that the sales were £200,000, adding that the information was given without any responsibility on his part. Charles purchased the inn and subsequently founf that although severa years previously turnover had approached £200,000, generally it was about £150,000Now my question is, since a disclaimer was added by the accountant.. he doesnt owe a duty of care to Charles right? And Also the accountant won’t be liable for the losses which Charles has suffered?
The correct statements in the kit answer are given as The accountant owes duty of care and is liable..
i dont get it, in a similar case the disclaimer excluded liability for negligenceWhere an accountant KNOWS (or ought reasonably to have known) that someone is going to rely on a statement made by the accountant, the accountant should act with reasonable skill and care
This is not a contractual relationship but fits well into the principles of tort
– legal neighbour
– negligence
– reliance on the negligent statement
– financial loss suffered
– direct connection between the loss suffered and the reliance on the negligent statementOK?
It USED to (Hedley Byrne v Heller and Partners)
But no more
Strange case of RBS v Bannerman where the accountants of a mutual client were found, in a Scottish Court, to be liable to the bank for a negligent audit opinion
That case has since been subsumed and accountants are now primarily liable under contract to the client company
However, where an accountant KNOWS (or ought reasonably to know) that a person is going to rely on their statements, then there is a duty in tort on the accountant to take reasonable skill and care when making that statement
I believe that the situation nowadays is that a disclaimer can be relied upon only in so far as it’s reasonable
Of course, ‘reasonable’ is a moving feast and is dependent upon innumerable variables
All very tricky!
OK?
Um ok sir so if I get a similar question in exam, and The person liable has included a disclaimer… it would not be valid as an exclusion clause. Have I put it right?
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