Under the Terms of a Contract,Abigail Provided Accounting Services to Theta

question 41

Essay

Under the terms of a contract,Abigail provided accounting services to Theta Inc.Those services culminated in the production of a financial statement.Unfortunately,Abigail did her job carelessly and the financial statement was inaccurate.Raekwon,who is a shareholder in Theta Inc,suffered a loss after relying upon the financial statements that Abigail prepared.He has sued her for negligence.Identify and briefly explain the factors that a court will consider in deciding whether or not Abigail owed Raekwon a duty of care.

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Definitions:

Knowledge Gathering

The collection of information from various sources comprehensively, aiming to increase understanding or make informed decisions.

Franchise System

A method of doing business whereby a franchisor licenses trademarks and proven methods of doing business to a franchisee in exchange for a recurring payment, and often a percentage of the franchisee's revenue.

Franchise Relationship Model (FRM)

A business model where a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

Best Efforts

A commitment to exert the utmost effort to achieve a specified objective within the constraints of the situation, without guaranteeing the outcome.