Negligent misstatement Flashcards
definition
where the D makes a statement, the C relies on that statement and loses money as a result
Hedley Byrne v Heller
set out conditions which if proved give rise to a special relationship between the two parties (Caparo v Dickman)
first condition
D possesses a special skill relating to the advice given- based on skill and judgement of D and reliance placed upon it
first condition side rule
social situations- CHAUDRY v PRABHAKER advice given in social situations may give rise to a duty of care provided they possess the relevant expertise
second condition
D knows it is highly likely that c will rely on that advice
2nd MUTUAL LIFE v EVATT
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 advice was given
third condition
C relies on the advice and suffers financial loss
fourth condition
it must be reasonable for C to rely on the advice- sufficient proximity between parties
4th sufficient proximity
if there is sufficient proximity between the parties it is more reasonable to rely on the advice (Caparo v Dickman)
if D was in a position of authority, more reasonable to rely (White v Jones)
4th condition side rule
Voluntary assumption of duty- HEDLEY BYRNE v HELLER if maker of statement voluntarily assumes responsibility rather than staying silent, supports existence of duty of care
