Business Law Essay Example | Topics and Well Written Essays - 1500 words

Business Law - Essay Example This paper highlights that   the Council will be liable in negligence for damages to the premises and repair costs. However, where the question of potential losses of profit of 50,000 pounds is concerned, it appears unlikely that the Courts will hold the Council responsible for compensation of such purely economic losses. According to Alderson B, negligence is defined as â€Å"the omission to so something which a reasonable man†¦.would do, or doing something, which a prudent and reasonable man would not do.†. Two kinds of omissions have been identified; a failure to take appropriate precautions and passive inaction, with the general rule being that there is no duty on a person to take action to prevent harm from befalling others. (Smith v Littlewoods organization Ltd.The Hanby Borough Council may be liable for the failure to take adequate precautions to ensure that flood protection was provided. The omission by passive inaction could also apply in the case of Hanby Council, however it is a public body and therefore has a duty of care to the public to safeguard the premises and prevent the occurrence of flooding. While the general rule of negligence by omission through passive inaction may not impute a duty to prevent harm from befalling others, some of the exceptions that have been identified are when there is an undertaking by the defendant. Ministry of Defence or when the defendant has control over the land or something which could be dangerous if interfered with. Hanby Council had control over the land which had flooded before and caused damages.