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2. (a) That's wrong. An agent must exercise the degree of skill and care which an agent in the same position would usually be expected to exercise. Failure to exercise appropriate care amounts to negligence. In this case, a power failure that might cause the backup system to fail is a clearly foreseeable risk, in relation to which the system is not 'fail-safe'. A computer specialist should have noticed this shortcoming.

Mitor Investments Pty Ltd v General Accident Fire & Life Assurance Corp Ltd [1984] WAR 365.