Economic Loss

Question 1

What legal principle did the case Weller v Foot and Mouth Disease Research Institute set out?

Answer 1

Legal principle: loss of income from this negligence was considered pure economic loss and covered. The court decided that to allow this would create limitless claims.

Question 2

What legal principle did the case Hedley Byrne v Heller and Partner set out?

Answer 2

Legal principle: a claim can be made if it can be shown that:
1. The statement was made negligently
2. If there a special relationship between parties

Question 3

What legal principle did the case Chaudhry v Prabhakar set out?

Answer 3

Legal principle: special relationship can exists in social relationships.