Question: should be answered using British law. ABC Ltd is negotiating to buy PRQ Ltd. Wilhelm, an independent accountant, is hired at short notice by PRQ

should be answered using British law.

ABC Ltd is negotiating to buy PRQ Ltd. Wilhelm, an independent accountant, is hired at short notice by PRQ Ltd to prepare a report on its financial position. He is aware that it will be used in the negotiations. Wilhelm produces a favourable report and on this basis, ABC Ltd buys PRQ Ltd. PRQ Ltd is actually in financial difficulty and is worth significantly less than the sum paid by ABC Ltd. Wilhelm had noticed some inconsistencies in the financial records of PRQ Ltd but due to the limited time available did not make any further enquiries.

Advise ABC Ltd as to the likely success of an action against Wilhelm. [25]

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