In a common law action against an accountant,lack of privity is a viable defence if the plaintiff ________.

Question

Quizplus · Accepted Answer

Lack of privity, meaning the absence of a direct contractual relationship, is a viable defense for an accountant when the plaintiff is someone who does not have a direct contractual relationship with the accountant, such as the client's creditor suing for negligence. Clients (C) have privity, and fraud (D) and gross negligence (B) can override the need for privity in some jurisdictions.

In a Common Law Action Against an Accountant,lack of Privity