Commercial transactions essay

Therefore, she has no duty of take to rough and Beeline, while Douglas feel for Ltd, as a professional confederacy has a duty of care to them. Sub Issue 1. 3 and 1. 4 although shocking was employed by browned & Co, it tummy be passably assumed that he wasnt presumptuousness work onual authority to give advice to mortal out of his accounting firm, nor was at that place any implied authority for disastrous to let him give advice on his employers behalf. By the way, it was reasonable to expect that point-blank and Beeline would act on Black, a professional accountants advice to sign the purchase shrivel up. Therefore Black has a duty of care o Frank and Beeline, but brown & Co does not.Issue 2 & Sub Issue 2. 1 and 2. 2 Frank and Beeline provokenot sue Marie, but they can make an action against Douglas Pity Ltd. If they can prove that Marie has provided negligent misstatement approximately the motel business, such as phone shout out records, they can ask Douglas Pity Lt d to pay part of their losses. They also hold to prove that Douglas Pity Ltd has breached their duty of care to them. Sub Issue 2. 3 and 2. 4 When e genuinelything was ready Frank said that they could not sign the contract unless Black gave them advice to sign it. Black, a professional accountant indicated them to do so.Therefore, Brown & Co is not liable for Frank and Bellinis damage, but Black is, because Black has breached his duty of care to Frank and Beeline. CONCLUSION Under the tort of negligence, two Douglas Pity Ltd and Black are liable for Frank and Bellinis losses. Frank and Beeline can sue them and if they can prove that Douglas and Black had given negligent misstatement about profitability of the motel business. For instance, Frank and Beeline need to provide evidence that Black had given unachievable occupancy rate of the motel. However, Frank and Beeline cannot themselves and they were not entirely relying upon Blacks advice.For example, Frank and Beeline didnt enqu ire Black whether the occupancy rates given by him was pragmatical or not. Overall, the chance of successfully getting remedies from Black is the largest, while there is also a reasonable chance to win the case against Douglas Pity Ltd. Frank and Beeline can expect to recover $ 15000 from Douglas Pity Ltd, $ 25000 from Black, but the rest part of their loss, approximately $ 35000 are their own liabilities. By the way, it would be very difficult for Frank and Beeline to receive any remedy from Marie and Brown & Co even if they chose to sue them.