Negligent Misstatement Flashcards
1
Q
When is D liable for a NM?
A
When D gives advice and makes no disclaimer if there is a reasonable & detrimental reliance.
D needs to know who will use NM & why
2
Q
What circumstances when NM won’t be found?
A
1- Statements in general circulation (Caparo)
3
Q
What 2 specific circumstances is a definite DoC owed?
A
1- Reference to ex-employee from ex-employer (Spring)
2- Auditors
4
Q
What is the 4 step Hedley-Burne test for NM?
A
Regarding provision of info/advice/services (CHH)
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