Question
Jack, the CEO of Dax Pty Ltd, had just introduced an O2, chemical-free cleaner that he hoped would transform the cleaning industry. He needed to
Jack, the CEO of Dax Pty Ltd, had just introduced an O2, chemical-free cleaner that he hoped would transform the cleaning industry. He needed to achieve sales quickly because he was having cash-flow problems so he retained the services of Wizard, a marketing company. He told Wizard that Dax was unable to pay upfront for its services and would thus need credit. Wizard did its due diligence, obtaining a credit history from Dax's bank (Mac Bank Ltd). The report was negligently prepared and did not accurately present Dax's financial position. Wizard accepted the contract and provided $50,000 worth of services. Unfortunately, 02 flopped. Dax was put into liquidation and Wizard was paid only $56,000. Advise Wizard whether it should take action against Mac Bank Ltd in tort for negligence.
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