Company directors, employees and agents
Williams v Natural Life Health Foods
- Brochures and financial projections emphasised how profitable the business was
- Claimed the success was due to the expertise of its managing director who was involved in preparing the financial projections
- Turnover was less than expected
- They sued for negligence in preparing the financial projections.
- In the absence of personal dealings with the managing director, it was not reasonable for them to rely on him
Merrett v Babb
- The court found that the borrowers had relied on the skill of the individual surveyor who prepared the valuation, even though they had never met him and did not even know his name
- The position of a company director was different from that of a professional in an unincorporated firm, the reasons for making such a distinction are not clear in the judgment.
Comments
No comments have yet been made