Econ Loss

Question 1

econ loss meaning

Answer 1

loss of money due to negligence

Question 2

consequential econ loss

Answer 2

loss in money that is a direct consequence of physical damage caused by negligent acts (loss linked to physical injury suffered)
is recoverable under (spartan steel v martin)

Question 3

pure econ loss

Answer 3

loss which is not directly consequent to any physical injury or damage to c
cannot be covered in tort (spartan steel v martin)

Question 4

negligent misstatement meaning

Answer 4

where the d makes a statement, c relies on that statement and looses money as a result
(hedley bryne v heller) sets out the following conditions which is proved give rise to a special relationship between the 2 parties (caparo v dickman)

Question 5

stage 1

Answer 5

d possesses a special skill relating to the advice given
based on the skill and judgement t of the d and the reliance placed upon it

Question 6

sr 1

Answer 6

social situations
general rule is that the d will not be liable for statements made informally or in social situations
however in (chaudhry v prabhaker) it was held advice given in a social situation may give rise to a duty of care, provided they posses relevant expertise

Question 7

stage 2

Answer 7

d knows that it is highly likely that the c will rely on that advice
(mutual life v evatt) held that a duty arises when the d was in the business of giving that type of advice or had professed to have special skill or knowledge in the field that the advice was given

Question 8

stage 3

Answer 8

c relies on the advice and suffers financial loss

Question 9

stage 4

Answer 9

it must have been reasonable for the c to rely on that advice

real test here is whether there is sufficient proximity between the parties for their to be reasonable reliance on that advice
if there is then it is more reasonable to rely on their advice (caparo v dickman)

Question 10

sr 2

Answer 10

if the d is in a position of authority/responsibility then it is more reasonable to rely on their advice (white v jones)

Question 11

SR 3

Answer 11

voluntary assumption of duty
this means that no one has asked for your advice but you decide to give it anyway
(hedley bryne v heller) held if the maker of the statement voluntarily assumes responsibility regarding the making of the statemr, rather than staying silent, this supports existence for a duty of care