pure economic loss

Question 1

intro ?

Answer 1

-Caparo v Dickman 5 features establish a special relationship to claim negligent misstatement

Question 2

First requirements ?

Answer 2

-defendant has specialist skill
-professional qualifications e.g lawyer, accountant (mutual life v evatt)

Question 3

second requirements ?

Answer 3

-c must rely on d’s advice must be reasonable to rely on the advice
-smith v Eric bush

Question 4

third requirement ?

Answer 4

-d must know the c will rely on the statement
-must know c will act upon the information without taking further advice (Caparo v Dickman)

Question 5

fourth requirement?

Answer 5

-advice must be committed directly to the c not through a third party
-third party means overhearing

Question 6

fifth requirement ?

Answer 6

• must be no disclaimer informing c not to take d does not accept responsibility (Hedley v byrne)

Question 7

six requirement ?

Answer 7

-if d gives advice in a social setting i.e party(Chaudry v prabhakar)
-d will only be liable if it reliable to rely on the advice