Explain Under What Circumstances the Defence of Remoteness Can Be

question 21

Essay

Explain under what circumstances the defence of remoteness can be used in a negligence action.

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Definitions:

Days' Sales

A measure of how efficiently a company converts its inventory into sales, typically calculated as days' sales in inventory or days sales outstanding.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, detailing the repayment period, discount for early payment, and penalty for late payment.

Comparative Balance Sheet

Financial statements that show the financial position of a business at different points in time, allowing for comparison.

Current Assets

Assets that can be converted into cash within one fiscal year or an operating cycle.