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Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer. Legal Principles:1. Negligence is a legal wrong that is suffered by someone at the hands of another who has a duty to take care but fails to take proper care to avoid what a reasonable person would regard as a foreseeable risk.2. The test of liability requires that the harm must be a reasonably foreseeable result of the defendant's conduct, a relationship of proximity must exist and it must be fair, just and reasonable to impose liability.3. The claimant must prove that harm would not have occurred 'but for' the negligence of the defendant.4. Duty of care is a legal obligation which is imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.5. Conversations between a doctor and patient are generally confidential but there are few exceptions.A company called KLM, manufacturers of electrical equipment, was the target of a takeover by ABS Industries. KLM was not doing well. In March 2019, KLM had issued a profit warning, which had halved its share price. In May 2019, KLM's directors made a preliminary announcement in its annual profits for the year up to March. This confirmed that the position was bad. The share price fell again. At this point, ABS had begun buying up shares in large numbers. In June 2019, the annual accounts, which were done with the help of the accountant Dinesh, were issued to the shareholders, which now included ABS. ABS reached a shareholding of 29.9% of the company, at which point it made a general offer for the remaining shares, as the City Code's rules on takeovers required. But once it had control, ABS found that KLM's accounts were in an even worse state than had been revealed by the directors or the auditors. It sued Dinesh for negligence in preparing the accounts and sought to recover its losses. This was the difference in value between the company as it had and what it would have had if the accounts had been accurate.Q. Which of the following answers is incorrect?a)No duty of care had arisen in relation to existing or potential shareholders. The only duty of care the auditor`s owed was to the governance of the firm.b)Dinesh is not liable as it is a case of pure economic loss in the absence of contractual agreements between parties.c)There are circumstances where an auditor will owe a duty of care in respect of reports produced. These are conditional that at the time the report is prepared it is known by the auditors that the results are for a specific class and for a specific purpose.d)An ability to foresee indirect or economic loss to another person as the result of a defendant’s conduct automatically imposes on the defendant a duty to take care to avoid that loss.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.