economic loss/negligent misstatement

Question 1

spartan steel v martin

Answer 1

in tort law you can claim for physical damage (loss of goods being manufactured) and consequential economic loss (loss of earnings), but not pure economic loss (goods that could have been manufactured)

Question 2

weller v foot and mouth disease research institute

Answer 2

you can only claim for pure economic loss under contract law

Question 3

hedley byrne v heller

Answer 3

doc owed if:

• the statement was made negligently
• there is a ‘special relationship’ between the parties

Question 4

caparo v dickman

Answer 4

set out 6 conditions to prove ‘special relationship’

Question 5

mutual life v evatt

Answer 5

1)the person giving the advice possess or professes to have skill related to the advice they are giving, so that they ought to realise that C would rely upon it

Question 6

jeb fasteners v marks

Answer 6

2)the party receiving the advice acted in reliance to their detriment, and it was reasonable to do so

Question 7

points 3-6 to satisfy ‘special relationship’

Answer 7

these really consider if there is sufficient proximity between the parties

3) the advice must be communicated to C directly
4) the person giving the advice must understand that their advice would be relied upon by C and that C would not take further advice
5) C does rely and has incurred financial loss
6) D will not be liable for statements made in a social situation

Question 8

chaudry v prabhaker

Answer 8

D may be liable in social situations if they possess the relevant expertise