Business Law

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Contents

Introduction......................................................................................................................................1
Issue #1............................................................................................................................................1
Application to contract....................................................................................................................2
Issue #2............................................................................................................................................2
References:......................................................................................................................................6
Introduction
Based on this case, Emman had recruited Diamonds to deliver his product. Emman has asked for
his medical fitness according to labor law. When an owner recruits anybody the owner should
justify the medical fitness for that post. So that Emman has also asked the medical report of
Diamond's fitness. Diamonds went to Dr. Aloff for his medical checkup. Mr. Alof has checked
the full body of Diamond and found that Diamond had the sleeping disorder. But Diamond
request to Aloff to hide this problem form medical report. Mr Aloff agreed to do that and he has
done as per request of Diamond. Dr. gave a medical report to Emman that Diamond has full fines
to work in him. But unfortunately when Diamond on his work he left the motorcycle. He was
asleep and struck Panca. Panca was heavily injured by the accident. Panca suited to Diamond for
his damages. The issues that are present in the case studies:

1. Can panca get any compensation for diamonds alleged.

2. What arguments will help panca to get his compensation and who will be responsible for that.

Issue #1
Occurred an accident concerning diamond negligence.

Negligence is a civil wrong, it's not a contract means failure to exercise reasonable care. In a
broad sense, Negligence is failing to do what should not to do and a person aren’t doing that
should do. [1]

According to the Law of Negligence and Limitation of Liability Act 2008 (NI)

“Damages” includes any kind of compensation;

“Harm” means damages of any physical substances —

(a) Injured by accidents or death; and

(b) Damage to physical property; and

(c) Financial loss;

“Injury” means physical damages of human body or mentally —

(a) Pre-natal injury; and

(b) Mentally injured; and

(c) Different types of Disease; and

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 (d) irritation, hurrying or repetition of an injury or disease;

Application to contract
This part applies the physical damages of any assets or any other physical substances. Now it
depends on different situation that claims are valid or not.

According to negligence, Panca suit against Diamond. Here diamond has a physical problem but
he hides it to Emman. Panca may suit against Dr. aloff. Because of aloff doesn't maintain his
professional ethics. He had given a misstatement to Emman. It is his liability to take the
responsibility. Aloff should inform the emman about the diamond's problem. But he didn't do
this. According to negligence theory, there is no contract between Emman and Aloff. But it his
responsibility to take the liability. It's a civil law. Aloff failure to d what he should do. He is the
reasonable person here. If he writes on the medical report that Diamond has the sleeping problem
then Emman could more conscious about Diamond. Emman may not provide this job to
Diamond. According to "Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964)" Bank and
Headley weren't any contracts. But it's a special case. The bank should inform Headley the
proper information. Though it's not bank responsibility to provide information to another party.
But some cases it may arise the liability. In this case, Dr. aloff arise the liability to inform
Emman regarding the problem of Diamond.

The House of Lords ruled that damages will arise when this four situation occurd and liable to
give the loss of damages.

(a) A relationship arises automatically between two parties;

(b) The party provide advice voluntarily to concern about the risk ;

(c) The advice should be relevant, reliable and trustable, and

(d) such reliance was reason for the negligence.

Issue #2
Panca has heavily injured here. He deserves a good treatment for that he needs money. So he
claimed for the damages. And it's the responsibility of the reasonable person. It depends on the
damages caused by the negligence or not. If damages caused by the negligence then they will get
the consideration from the reasonable person for that reason. Here Dr aloff will give the
compensation. In Headley case, The Lord Reid said that:

When a pure financial accident occurs or economical loss happened by the negligence then only
duty of care exist. Only limited person get the consideration not to all. Limited people are
making a relationship with the respected person. Trusting on other and making relation will give
a chances to bring the compensation. Where it is possible to give the advice and other are getting
information. It gave the information or advice when he knew or ought to have known that the
inquirer was relying on him.

This sets 2 criteria:

Reasonable reliance - was the plaintiff reasonable in relying on the information?

Knowledge of the reliance will bring great chances to the defendant to know or ought to know
about the law of negligence to get the compensation?

If a man asked for advice he/she can do three things: these are:

1. Refuse to give the offer ,

2. Give the advice but exclude his liability for any kind of other party negligence ,

3. Give the advice without a disclaimer. It means adviser is ready to take any kind of
responsibility willingly.

If advice is given without a disclaimer, the advice-giver assumes at least some sort of
responsibility.

In this point of view, Mr aloff is responsible to provide the compensation. Because he gives
misstatements and he didn’t tell anybody about the diamonds problem. So it causes a heavy
accident. Now he will provide the loss of damage.

When a party takes advice then it arises the responsibility of advisers to provide the correct
information. Here, Aloff failed to do his job. This is his responsibility to guide the Emman about
the physical problem of Diamonds.

Breach of duty: A breach of duty means are failing to maintain his/her duty to others to protect
them . Dr aloff breach of his duty. Though he doesn't make any contract with any party it arises a
civil right to maintain his duty. It's already discussed that negligence is a civil wrong what is
done by Dr. aloff. He should be punished if the injuries are highly affected by the injured person.

Factors to be taken into account in considering breach:

1. The probability of harm refers to Bolton v Stone

2. The seriousness of harm refers to Paris v Stepney

3. Preventative steps to be taken to reduce potential harm refers to Latimer v AEC

1. The probability of harm: In this case, there was the huge probability of harm. MR diamond has
a sleeping problem. There was a chance to make an accident at any time. But still, MR aloof
takes the responsibility. He didn't think about the future situation, he thought it wouldn't be a
serious problem. But now it took a serious problem. So now he should give the penalty for that.
On the other hand MR. Emman is free from this liability. Because he asked the Diamond about
his physical condition. But MR diamond gives a false report to the Emman. Anyways Aloff gets
a false certificate of his physical condition and he gave it to the Emman. So emman is totally free
from this consent. At this point of view, Mr Aloff should take all the responsibility.

2. The duty of care: Mr aloff breached the duty of care. The duty of care means the right thing
would do the reasonable person. It' a moral or legal obligation to ensure well being of others. In
this case, MR emman tries to do something good for another person. So that he wants a medical
certificate from the Employee by following labor law. But the Diamond and Aloff cheat him. So
now Emman can also against the Aloff because of his misstatements. For Panca's Sui Mr emman
lose some fame of his business as well as him. He can also claim some damages of his
reputation. He was concern about the law and ethics. But aloff failed to concentrate on his ethical
behavior. A Dr can't do this kind of activities to the patients and society.

3. Causation: There could be a direct link to damages and reason. But sometimes it doesn't need
to make any direct link between the parties. According to the Hedley vs Byrne, Bank doesn't
have any direct relation. But also Lord Reid declares that Bank has a responsibility. When a
party gives advice to the other party adviser should take the responsibility. But of course,
Adviser can relief from this responsibility if declare that the data or information may be varied in
future time during the advising time. Then it could relief adviser from the responsibility.

4. Remote to recover: The responsible person will pay the damages but it doesn't mean that they
will give a lot of money. There is a limit that how many penalties will pay the reasonable person.
The test of causation is an act of defendant person to give some compensation to limited person
not to all of the hearing body. Sometime people are trying to misuse the law by suing some case.
So this act may help them to protect themselves.

“If a man is negligently run over... it is no answer to the sufferer’s claim for damages that he
would have suffered less injury... if he had not had an unusually thin skull or an unusually weak
heart” by Lord Parker.[6]

Above all the discussion, Mr. Emman takes a wise decision when he recruits the Diamonds. He
tried to get all the information about Diamond and he introduces the job description of diamonds.
But diamonds have greedy to get this job that's why taking the false statements from the Dr.
aloff. He convinces the aloff to hide his physical disorder regarding his asleep problem. Dr aloff
hide this problem from the report and gave it to the Emman. Emman believes the report and
gives the appointment letter to the Diamonds. When Emman gives the motorbike and Diamond
go the job he felt ill and left the bike in roadside. Diamond strike the panca and get injured him.
Then Panca suited against the diamond. But in this case and following the negligence law there
is the problem between the Dr aloff. Because of when a person comes to take advice than adviser
should give the right advice. But here Aloff failed to do his job properly. Aloff has done a
mistake by giving misstatements to Emman where Emman and Aloff don't have any relation. In
this situation, Panca claimed loss of damages. These damages will be provided by Aloff. Aloff
neglect the patient's problem. Aloff doesn't think about the duty of care. Aloff should think about
the duty of care ( try to do some welfare to another person). But aloff failed to do his duty
properly. Aloff Breches the duty and he take responsibility for damages unintentionally. So now
aloff will give the penalty. But it also true that Aloff will pay not more than damages. Lord
Parker told that if damage occurs then the responsible person will pay, but it doesn't mean that it
will be remote to earn money. In a remote, there is the limitation of the key to operate the device,
here also limitation of payment. When the injured man asks the damages then the responsible
person will pay in the limit. And the damages should be directly linked to the causes. Otherwise,
the injured party won't get any compensation.

In the end, it will be concluded part that Negligence is civil wrong but it may cause huge damage
sometime. So all the business people and all the human being who lives in society should be
careful always about their duty.
References:
1. Blyth v Birmingham Waterworks Company (1856)

2. Law of Negligence and Limitation of Liability Act 2008 (NI)

3. Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964) AC 465

4. Vaughan v Menlove (1837) 3 Bing. N.C. 467

5. Bolton v. Stone [1951] AC 850

6. [1962] 2 QB 405