Economic Loss (Negligent Misstatement) - Paper 2 Flashcards

1
Q

What is economic loss?

A

Loss of money due to D’s negligence

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2
Q

What are the two types of economic loss?

A

Pure and Consequential

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3
Q

What is pure economic loss?

A

Financial loss which is not consequent on any physical injury or damage to C and you cannot claim for this in Tort law

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4
Q

What is consequential economic loss?

A

Loss in money which is a direct consequence of physical damage caused by negligent acts and this loss is recoverable

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5
Q

Which case established the law for economic loss?

A

Spartan Steel v Martin

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6
Q

What is the meaning of negligent misstatement?

A

D makes a statement, C relies on that statement and loses money as a result

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7
Q

Which case established the four conditions for negligent misstatement

A

Hedley Byrne v Heller

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8
Q

What is the first stage of negligent misstatement?

A

D must possess special skill relating to the advice given, based on the skill and judgement of D and the reliance placed upon it

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9
Q

What is the general rule about statements made informally or in a social situation?

A

D will not be liable

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10
Q

Which case held that advice given in a social situation may rise to a duty of care provided they possess relevant expertise?

A

Chaudhry v Prahaker

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11
Q

What is the second stage of negligent misstatement?

A

D must know that it is highly likely C will rely on that advice

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12
Q

What was the ruling in Mutual Life v Evatt?

A

A duty arises when D was in the business of giving that type of advice, or had professed to have special skill or knowledge in the field in which the advice was given

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13
Q

What is the third stage of negligent misstatement?

A

C must rely on the advice and suffer a financial loss

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14
Q

What is the final stage of negligent misstatement?

A

It must be reasonable for C to rely on the advice

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15
Q

What is the ruling from White v Jones?

A

If D is in a position of authority or responsibility, then it is more reasonable to rely on their advice

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