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Extra info for CIMA Learning System Fundamentals of Ethics, Corporate Governance and Business Law: New syllabus (CIMA Certificate Level 2008)
1 COMPARISON OF ENGLISH LAW WITH ALTERNATIVE LEGAL SYSTEM A tort must be distinguished from a breach of contract. A contract is a voluntary agreement. The parties may agree upon a number of stringent obligations which each party promises to observe. In the event of default the claimant will be entitled to sue for breach of contract (see Chapters 2). In the tort of negligence, however, obligations are not accepted by voluntary agreement but are imposed upon the persons concerned by the state. QXD COMPARISON OF ENGLISH LAW WITH ALTERNATIVE LEGAL SYSTEM 10 1/7/06 4:13 PM Page 10 STUDY MATERIAL C5 The ratio decidendi and obiter dicta are part of this process.
ADT therefore sued Binder Hamlyn for the difference, £65m, plus interest. Duty post-Caparo The main legal issue for the judge to determine was whether Binder Hamlyn owed any duty of care to ADT for the advice given in relation to BSG’s financial position. It was established by the House of Lords’ decision in Caparo Industries v. Dickman, in 1990, that an auditor does not owe a duty to individual shareholders, whether existing or prospective, where the shareholder intends to use that opinion (or the underlying financial information) for the purpose of making investment decisions.
First, it may try less serious offences itself, and in practice most criminal cases are dealt with by the Magistrates Court. Secondly, so far as the more serious offences are concerned, the court decides whether the accused has a case to answer and, if so, will send the case to the Crown Court to be tried by a judge and jury. Appeal by way of ‘case stated’ from the Magistrates and Crown Court lies to the Divisional Court of the Queen’s Bench Division. In this type of appeal the findings of fact and law found by the Magistrates and Crown Court are stated in writing and sent to the Divisional Court which decides whether the law has been correctly applied.