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 Should Max have known about the bad financial account
he would have probably not invested all his savings.

Actual cause refers to
a cause or factor without which the event could not have occurred. It is also
termed as but for cause or cause in fact or factual cause. The but-for test is
often used to determine actual causation. But for test is one of several tests
to determine if a defendant is responsible for a happening. The test simply
asks, “but for the existence of A, would B have occurred?” If the
answer is yes, then factor A is an actual cause of result B.

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Causation is determining
whether the care which the defendant has breached is the cause of the incident.
Causation has two types of causes they are actual and proximate


To understand whether the
defendant has breached the duty of care they would be compared to ‘reasonable person’.
The reasonable person is prudent and would work with due care whilst avoiding
extremes of both boldness and caution, it is used as a test of liability in
cases of negligence. If the level of care that is applied by the defendant is
below of which would be expected from the ‘reasonable person’, it would be
deemed that they have breached their level of care to the claimant. Therefor they
would be guilty of breaching their duty of care. In the case of Max v Phoenix,
Phoenix would be found guilty of breaching their duty of care as Tim failed to inspect
the accounts of HMO Conversions Ltd, which were in a poor financial condition.

Breach of Duty



The duty of the
defendant is to have a reasonable care over the prosecutor. In the case of Max v Phoenix it’s seen as
Max the claimant and Phoenix are the defendant. The proof which confirms
Phoenix have the courts would also ask id

Duty of Care

Causation – Proximate cause is substantial factor test

Causation – Actual cause is ‘but for’ test from Barnett v
Chelsea & Kensington Hospital.

Breach of duty – Bolam test.

Duty of Care – psychiatric injury the test used is the
Alcock test.

Duty of care – Person injury and property the test that’s
used is the Caparo Test.

To prove three of the
above there’s tests which you apply to the circumstance of the case. The tests

Test to Elements




Breach of Duty

Duty of care

To prove a possible
claim of negligence several steps need to be demonstrated, these are:

4 Elements of Negligence

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