- 12 Marks
BCL – Dec2022 – Q2a – Tort, Agency
Discuss the legal implications of a negligent misstatement and the effects of an agent acting without authority.
Question
A firm of chartered accountants prepared the financial statements of Highskies Ltd knowing that the company was going to use the report to persuade Dr. Kwesi Antwi, a prospective investor, to invest money in Highskies Ltd. Relying on the accounts, Dr. Kwesi Antwi invested two million Ghana Cedis (GH¢2,000,000) in the company. However, a year later, the company collapsed. Dr. Kwesi Antwi, therefore, decided to take legal action against the firm of chartered accountants.
Required:
i) Advise whether Dr. Kwesi Antwi’s legal action in court will be successful. (3 marks)
ii) State THREE (3) effects of an agent acting without authority. (6 marks)
iii) Explain the phrase “term of Contract.” (3 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Agency Law, Contract Law, Duty of Care, Negligent Misstatement
- Level: Level 1
- Topic: Agency Law, Tort
- Series: DEC 2022
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