negligent misstatement

Question 1

start

Answer 1

generally no duty is owed when causing another to suffer a loss that is purely economic. however if the economic loss is caused by a negligent misstatement rather than a negligent act, liability may be imposed

Question 2

according to hedley Byrne…

Answer 2

a defendant only owes a duty of care to a claimant in the making of a statement if there is a “special relationship” between them. this means 1) the defendant possesses some special skill relating to the statement 2) knows that it is highly likely the claimant will rely on the statement 3) the claimant does rely on it, thereby incurring financial loss and it was reasonable for the claimant to rely on it

Question 3

hedley byrne

Answer 3

a negligent misstatement may give rise for an action for economic loss

Question 4

chaundry v prhabhakar

Answer 4

as c believed d was knowledgable about cars there was reliance

Question 5

smith v bush

Answer 5

a duty of care can arise in misstatements made in a proffesional context