negligent misstatement

Question 1

can C make claim for ‘pure economic loss’

Answer 1

NO, Spartan steel v Martin

Question 2

weller v foot and mouth

Answer 2

pure economic loss not recoverable under tort

Question 3

‘exclusionary clause’

Answer 3

excludes loss of profit from scope of any duty of care

Question 4

2 situations for negligent misstatement?

Answer 4

2 party liability

3 party liability

Question 5

Hedley v Byrne

Answer 5

claim made by those suffered financial loss relying on a statement is allowed
must be established that:
statement was made negligently
there’s ‘special relationship’ between parties

Question 6

special relationship

Answer 6

caparo v dickman

person giving advice owes a duty of care to C

Question 7

requirements for ‘special relationship’

Answer 7

• possession of special skill or expertise by person giving advice
• reliance by c on the advice, c used and acted on the statement, must be sufficient proximity between parties for there to be reliance Raja v Gray
• advice is communicated directly to C, not through 3rd party
• person giving advice knows its being used for, must know advice will be acted on without c getting other advice
• no disclaimer to act as a defence

Question 8

disclaimer

Answer 8

statement informing c that company doesn’t accept responsibility for advice given

Question 9

chaudry v prabhakar

Answer 9

special relationship can exist even if advice given in social situation or social relationship