In Which Case Was It Held That an Auditor Did

question 64

Multiple Choice

In which case was it held that an auditor did not owe a duty of care to potential shareholders?

• A) Caparo
• B) Cambridge Credit
• C) London and General Bank
• D) Nelson Guarantee Corp Ltd

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Definitions:

Incidental Damages

Incidental damages refer to the costs incurred by one party due to another's breach of contract, including expenses directly resulting from the breach, such as costs to find a replacement.

Installment Contract

A contractual arrangement where payment is made in parts over a period of time until the full purchase price is paid.

CISG

Stands for the United Nations Convention on Contracts for the International Sale of Goods, which governs the sale of goods between businesses in different countries.

Avoidance

A legal principle or action taken to invalidate or cancel a contract, thereby relieving the parties of their obligations under that contract.