Tort Law - Economic Loss

Question 1

What is economic loss?

Answer 1

When the claimant suffers monetary loss due to the negligence of the defendant.

Question 2

What is consequential economic loss?

Answer 2

Claimant suffered monetary loss due to a physical loss. Economic loss is due to the negligent act.

Question 3

What is pure economic loss?

Answer 3

Just a loss of money.

Question 4

What is a negligent misstatement?

Answer 4

A misstatement made honestly, but carelessly by party A to party B where A owes B a duty of care.

Question 5

Special relationship test - what is meant by a special skill?

Answer 5

The advisor is knowledgeable on what their giving advice on. ( mutual life v Evatt)

Question 6

Special relationship test - relied on the statement to their detriment?

Answer 6

Relying on that advice meant they’ve lost out in some way. ( Yianni v Edwin Evans and sons)