Sofia tells her Accountant, Luca, to prepare the financial statements of her business and then send...

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?

Expert Solution

Answer :-

Luca will be subject to Chase for carelessness under the tort laws.
For this situation Chase Manhattan Bank is an outsider that depended on the fiscal summaries that were set up by Luca, in his ability as a bookkeeper of Sofia.
The fiscal summaries were set up in a careless way and in a way that erroneously made Sofia's matter of fact and money related state of the business superior to anything it really was.
As a bookkeeper Luca owed an obligation of consideration not exclusively to Sofia yet in addition to every single outsider who depend on the bookkeeper's work.
Accordingly Luca will be at risk to Chase for carelessness under the tort laws and can be sued for carelessness in the execution of his obligations and for misrepresentation too (by displaying a bogus image of the money related state of the organization).
To guarantee harms from Luca Chase should demonstrate that Luca's break of obligation was the immediate explanation behind the misfortune acquired by them.

ekkarill92 answered 2 years ago

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