PEL and negligent misstatement Flashcards
what was established in spartan steel/weller
the law doesn’t allow claims for PEL resulting from D’s physical acts or omissions
what was established in Hedley Byrne
claims for PEL may be made in certain situations where there is a negligent misstatement
how many elements are there to proof proximity
six
element 1
D possess (or holds themselves out to possess) a special skill in relation to the statement
case for element 1
Esso v mardon
element 2
D knows (or ought to know) the purpose for which the advice is sought
case for element 2
Caparo v dickman - D didn’t know the purpose
element 3
D knows (or ought to know) that C is highly likely to rely on their statement
case for element 3
Smith v bush
element 4
if the party providing the advice voluntarily assumed responsibility for the advice, it indicates that there is a duty
case for element 4
Henderson v merrett
what was established in Hedley Byrne in element 4
a person has three choices
1) refuse to give advice
2) provide the advice with a disclaimer/warning
3) provide advice without disclaimer/warning
element 5
C must rely on the defendants statement which then led to their detriment
case for element 5
JEB v fasteners
element 6
it must be reasonable for C to rely on the statement. Consider several factors