Law Essay Example

Business Tort

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24/05/ 2011

The contract between Howard and Scrooge and the other one between Mark and Susie and David were not legally enforceable since they were based on mutuality and personal interests. Mark and Susie are concerned about losing their $50,000 investment, while David is concerned about losing his job and Scrooge is concerned in loosing his professional reputation.

Statement of Law

Parties involved in a legal contract must have an intention requiring them to use a legal system to enforce their rights and liabilities. Mark and Susie had entered into a contract with Howard since there was a consideration, $50,000, Biotechnology v Pace. Negligence in tort protects a person and property from harm caused by another person’s failure taking reasonable care. Negligence now dominates modern tort law after the case of Donoghue v Stevenson 1932.


Mark and Susie had legal rights to true to acquire true information from Scrooge if at all he was aware that the business was on sell out. Negligence in Mark and Susie is evident where they engaged a trainee, David and also David was negligent since he was aware he was not yet fully qualified. Scrooge gave false information and Scandal did not fire David rightfully.


Mark and Susie do not have any right since they had checked the books concluded that they were correct and a liability for loss in investment. Scrooge is liable for giving misleading information. Scandal did not rightfully fire David since he was still a trainee and was not acting on its behalf, thus Scandal’s liability to compensate David and consequently a right to David.


Gibson, A & Fraser, D 2011, Business Law, 5th Edition, Pearson Education Australia