Economic Loss Flashcards
1
Q
Pure economic loss Vs Consequential economic loss
A
- Only loss of finances
- Economic loss as a consequence of injury/property damage (Spartan Steel v Martin)
2
Q
Pure economic loss rules
A
Usually cannot claim for pure economic loss (floodgates) but may if negligent misstatement
3
Q
Negligent misstatement
A
False/incorrect financial advice
4
Q
Rules of special relationship
A
Caparo -
- D. has special skills/expertises
- C. relies on the statement + it was reasonable to do so
- D. knows C. relies on their statement
- Advice is communicated directly (no third party or writing)
- No disclaimer
5
Q
- C. relies on the statement + it was reasonable to do so
- D. knows C. relies on their statement
- No disclaimer
A
Smith v Bush
Caparo v Dickman
Hedley v Byrne
6
Q
Rules of special relationship even apply in social situations
A
Chaudry v Prabhakur
7
Q
Chaudry v Prabhakur
A
Rules of special relationship even apply in social situations
