- 4 Marks
BL – May 2016 – L1 – SB – Q4a – Law of Tort
Advise on legal action for losses incurred due to professional advice in a business investment.
Question
Femi, an entrepreneur, and his friend Umukan, a Chartered Accountant, are members of the same social club. Femi invited Emike to invest in sachet water business. Emike sought the professional advice of Umukan and paid him a fee for the advice. Umukan informed Emike that Femi’s business was doing well. Emike invested in the business based on Umukan’s professional advice and eventually suffered a loss of ₦350,000. Emike has come to you for advice.
Required:
Advise Emike on his chances of succeeding in a legal action he intends to institute against Umukan.
Find Related Questions by Tags, levels, etc.
- Tags: Investment advice, Legal Action, Professional Negligence
- Level: Level 1
- Topic: Law of Tort
- Series: MAY 2016