Contributory Negligence

question 16

Multiple Choice

Contributory negligence:

• A)has always been available as a defence to the auditor.
• B)indicates the auditor has played no part in the plaintiff's loss.
• C)will result in an apportionment of damages arising from the plaintiff's loss between the defendant and the plaintiff.
• D)is used to describe the causal relationship between the actions of the auditor and any loss suffered by a plaintiff.

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Definitions:

Implied Covenant

An obligation between parties that is not explicitly stated in a contract but is presumed to exist to facilitate the contract's purpose and ensure fairness.

Good Faith

Conducting oneself with honesty, fairness, and sincerity in dealings or transactions, without the intention to deceive or defraud.

Mortgage Loan

A loan secured by the collateral of specified real estate property, where the borrower is obliged to pay back with a predetermined set of payments.

Duty To Buy

An obligation, usually legal or contractual, to purchase a specific product or service.