Negligent Misstatement

avatar
Created by
Ezra Cunliffe

Cards (2)

  • Introduction

    Can claim for pure economic loss if C relies on a negligently made statement
    Hedley Byrne v Heller
    1. Statement made negligently
    2. Special (fiduciary/trust) relationship between parties
  • Special Relationship

    Caparo Test
    1. Person giving advise must have special skill relating to advice that D ought to have realised C would rely on skill - Mutual Life v Evatt
    2. Party receiving acted in reliance on it and was reasonable to rely on - Jeb Fastners
    3. Advice communicated directly between parties, not through 3rd party - Radio/newspaper/TV
    4. Person giving advice understood it would be relied upon and that C would not seek further advice
    5. C relies and incurred financial loss
    6. D WILL NOT BE HELD LAIBLE FOR STATEMENTS MADE INFORMALLY OR IN A SOCIAL SITUATION - Chaudhry