economic loss

Question 1

loss created by negligent acts

loss of profit is breach in contract

Answer 1

spartan vs Steel

Weller vs foot and mouth disease RI

Question 2

loss caused by negligent act

courts try to restrict liability

Answer 2

spartan vs steel- the courts try not to create Floodgates

Very immoral

Question 3

loss created by negligent misstatement

what is 2 party liability ?

Answer 3

A gives advice or makes statement to B, and B suffers a loss and relyed on statement. if there is a contract B can claim, if there is no contract, the question is asked whether B is bringing a claim through negligent behaviour

Question 4

Three party liability

Answer 4

A make statement to B, communicated to C, suffers a loss relying on statement
there’s no contractual relationship between A and C

Question 5

duty of care to an investor who relied on the advice

Answer 5

Chandler vs crane Christmas and Co

Question 6

someone relies on statement - suffers financial loss

Answer 6

Hedley Byrne vs Heller and Partners-

• statement was made negligently
• there was a special relationship between parties

Question 7

what needs to be established so that a special relationship is proved

Answer 7

• possession of expert
• reliance by claiming on advice
• is there sufficient proximity between parties- RAJA VS GRAY-claimant must show actual and consequential loss
• advised communicated directly to claimant and not third party
• the advisor knows how the advice is going to be used
• no disclaimer as a defence

Question 8

advice can be given in social situation not just business

Answer 8

Chaudhry vs prabhakar

Question 9

unfair situations

Answer 9

-restrictions due to flood Gates

people with insurance can be sued even if they’re not liable