Jack, the CEO of Dax Pty Ltd, has just introduced a new environmentally friendly and chemical-free product into the market that he hopes would transform the cleaning industry.

Jack need to achieve sales quickly as the company has spent so much money developing the product that it is having serious problems with cash flow. Jack is not a marketing person so he retains the services of Wizard Ltd, a marketing company.

He tells Wizard Ltd that Dax Ltd is unable to pay upfront for its services and would thus need credit. Wizard Ltd does its due diligence, obtaining a credit history from the bank of Dax Ltd, the Mac Bank Ltd.

The report is not carefully prepared and does not provide an accurate depiction of the financial position of Dax Ltd. Wizard Ltd accepts the contract and provides HK$200,000 worth of services.

Unfortunately, despite the marketing efforts, Jack's products flop and Dax Ltd is put into liquidation. Wizard is paid only HK$56,000.

Advise Wizard Ltd of its legal position.