Question
Ground Bakery Ltd was looking to expand its business and was pursuing initial discussions to buy Loaf Ltd. In order to assist with the discussion
Ground Bakery Ltd was looking to expand its business and was pursuing initial discussions to buy Loaf Ltd. In order to assist with the discussion on price, the chief executive of Loaf Ltd, Helen, asked the company's accountants, Abacus LLP to prepare draft accounts on Loaf Ltd as quickly as possible. Abacus LLP made it clear that these draft accounts were for Helen's use only. Without Abacus LLP's knowledge, Helen showed the draft accounts to Ground Bakery Ltd. The takeover went ahead but Ground Bakery Ltd was unhappy to find several discrepancies in the draft accounts.
Explain the law in relation to negligent misstatement and analyse whether Ground Bakery Ltd will be able to bring a claim in the tort of negligence against Abacus LLP.
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