Sofia tells her Accountant, Luca, to prepare the financial statements of her business and then send them to Chase Manhattan Bank. She tells Luca that she wants to get a loan for her struggling business. Luca prepares the statements and emails them to the Bank. Six months later, Sofia's business files for bankruptcy. Chase files suit against Luca because he prepared the financial statements negligently. He made Sofia's business look better than it really was. If Luca was negligent in preparing the statements, under which rule or rules can he be liable to Chase for negligence

A tort can be basically described as an act or omission, which gives rise to an injury or harm, that could results into a civil wrong that could warrant a liability.

A tort can exist in 3 forms;

1. Negligence

2. Intentional torts, and

3. Strict liability.

The scenario under study here is a clear case of negligence. Here, the bank opined that there is deliberate and deceitful representation of the financial statement. Luca, the accountant, acknowledged that he was negligent in the preparation of this financial statements. The rule that governs this borders on negligence, and thus laws of tort comes handy in addressing this.

Martebi Martebi · Answer 2 · 2021-12-07T13:55:51+01:00

There are different forms of negligence. Luca is said to be liable to Chase for negligence under the tort laws.

The aspect of tort law known as negligence is simply known to be the harm caused by failing to act due to carelessness due to some circumstances.

A person who suffers loss due to the negligence of another person can sue for damages to compensate for their harm. it often applies to both individuals and businesses.

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