Pure Economic Loss

Question 1

negligent misrepresentation/ negligent advice- DUTY FOUN case law

Answer 1

Clay v Crump [1963]; Perrett v Collins [1998]

Question 2

defect v damage- Why is Murphy v Brentwood [1991] significant?

Answer 2

no duty of care is owed in negligence for pure economic loss in the case of defective articles unless there is also property damage or someone is injuredd

Question 3

statements- court found a duty

Answer 3

Hedley Burne v Heller [1964]

Question 4

what are the stages of the reasonable reliance test?

Answer 4

1. C relied on D’s advice- proximity
2. It was reasonable for C to rely on this advice- Fairness
3. D knew that C was relying on the advice- forseeability

Question 5

what factors are considered in order to determine fairness in pure economic loss claims?

Answer 5

skill of the defendant- Mardon [1976]
skill of claimant- Stevenson v Nationwide [1984]
formality of situation

Question 6

assumption of responsibility gives rise to a duty of care

Answer 6

Henderson v Merret [1995]; NRAM v Steel [2018]

Question 7

wills- recognised category of duty

Answer 7

White v Jones [1995]

Question 8

surveys- recognised category

Answer 8

Smith v Bush [1990]

Question 9

References- recognised category

Answer 9

Spring v Guardian [1995]

Question 10

policy concerns- danger of interfering with the rules of contract- case law

Answer 10

Williams v Natural Life- tort is designed to fill in the gaps that exist in contract
Tai Hing Cotton - if there is a contract, courts should not interfere with tortious liability