a statement issued carelessly by the d, which is relied upon by the claimant to his detriment
1 of 17
to be actionable, what must the statement cause?
loss or damage, (rarely personal injury)
2 of 17
what type of loss is usually not actionable?
pure economic loss
3 of 17
where will the statement usually be made?
in the course of business by a professional
4 of 17
where can advice also be given?
during the course of a social gathering, when adivce was acted on and caused loss
5 of 17
true or false? people are less carefgul in what they say at a social gathering compared to what is said in the course of giving business advice
true
6 of 17
why has the law on negligence developed more slowly and cautiously for negligent misstatement than it has for straight negligence?
the courts do not want to open the floodgates to all sorts of actions that may arise when the listener has heard another giving an opinion or advice to another person
7 of 17
what happened in Hedley Byrne?
customer put in large order, asked bank to check financial postion, said it was all okay, then they went into liquidisation, lost loads of money, information was given negligently and was misleading
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what did the hol suggest?
a duty of care in making statements was a legal possibility and that the d had been negligent
9 of 17
what is the broad effects of this case?
it recognises that certain careless false statements are actionable for pure economic loss
10 of 17
what happened in caparo industries plc v dickman?
caparo industries purchased shares in fidelity plc in reliance of the statutory accounts approved by the auditors which stated that the company had made a pre-tax profit of 1.3m. in fact fidelity had made a loss of over £400,000
11 of 17
what did the hol suggest?
no duty of care was owed. there was not sufficient proximity between caparo and audition since the auditors were not aware of the existence of caparo nor the purpose for which the accounts were being used by them
12 of 17
what are the principles from hedley byrne and caparo?
a duty of care when he knows, that the c would properly rely on the d's skill and judgement, the purpose for which the advice is requested,what the d said would be communicated to the claimant
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what is the special relationship often referred to as?
an assumption of responsibility by the d
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why must the c show some reliance on the d?
otherwise there would be no causation
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what does a special relationship require?
skill of d, reliance on advice, knowledge of reliance, communication of advice, no disclaimer
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what happened in chaundhry v prabhakar?
c asked a friend, who claimed to be knowledgeable aobut cars, to help her buy a car. c bught a car after d recommened a car which he stated had not been in any accident. the car had visible damage-car=unroadworthy, due to previous accident
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