In: Accounting
Legal terms affecting CPA's Liability:
please explain it:
Terrms related to negligence and fraud:
1. Ordinary negligence?
2. Gross negligence?
3. Constructive fraud?
4. Fraud?
Terms related to contract law::
1.Breach of contract?
2. Third-party beneficiary?
Other terms:
1. common Law?
2.Statury Law?
3. Joint and several liability?
4.Separate and proportionate liability?
Solutions:-
Legal terms affecting CPA's Liability
Terrms related to negligence and fraud:
Ordinary Negligence termed as a careless mistake or Inattention toward certain work. it refers to the careless attitude of a person in a particular situation. For Example:- A Truck Driver running a stop sign or stop light causing an injury crash.
In case of Ordinary Negligence, The responsible person doesn't mean to cause harm to others but that doesn't mean they are harmless. They can still be responsible for the damage caused by them.
2. Gross Negligence?
Gross Negligence is refered as concious or willful disregard of the need to use reasonable care.
In other words, it is said that comitting an action that is likely to cause harm to other people and property. For Example:- A surgeon or surgical team not following protocol to ensure all foreign objects are outside of person before a procedure is complete.
3. Constructive fraud?
Constructive fraud is a unfair method of gaining unfair advantage over others by violating some type of public interest. For Example:- A Juice manufacture failing to diclose procuct defects to consumers.
4. Fraud?
In simple term fraud means deliberately misrepresentation of facts to get advantage over others. In other words, Fraud means wrongful or criminal deception intended to result in financial or personal gain.
Terms related to contract law:
1. Breach of Contract?
Breach of Contract refers to the condition where one party fails to deliver according to the terms of the agreement. In other words, A Breach of contract is the violation of any of the agreed terms and conditions of binding contract.
Breach of contract happens because of many factors like Late payment, Falue to deliver on time and cost, Market conditions, unpredicted situations etc.
2. Third Party beneficiary?
Third party beneficiary refers to the person or a business which benefits from the terms and conditions of a contract made between two other parties or companies. For Example Robert and Donald came in to contract for a particular work and the made one more contract with Tim to complete this work for money. So, in this case Tim is third party beneficiary.
Other terms:
1. Common Law?
Common law is the law which is not passed by legislature. it is the law which have been made by Judges as they issue ruling on a case.
In other words the law which is made by Judege by issuing rulings on a case is called as common law.
2. Statutory Law?
Statutory law is the law which is passed by the body legislature. In other word Statury law is a written law which is passed by the legislative branch of the government.
3. Joint and Several liability?
Joint and Several liability is the rule in which two or more parties can be held liable for the full amount of damage regardless of their respective degree of damage. In other words, Two or more people are liable for the loss suffered by another person is called as Joint and Several liability.
4. Seperate and Proportionate liability?
Seperate and propertionate liability means the assessment against a defendant caused by the defendent's negligence.