economic loss Flashcards
1
Q
economic loss
A
- financial loss and damages suffered by a person
2
Q
consequential economic loss
A
- occurs when the claimant suffers a loss of money because they have suffered a physical loss
- is recoverable (normal negligence rules)
3
Q
pure economic loss
A
- just a loss of money, no personal injury or physical damage
- not recoverable unless there is a negligent misstatement and special relationship
- spartan steel and alloys v martin
4
Q
PEL legal principle
A
- loss of profit cannot be claimed in tort
- only damage to goods or loss that is reasonably foreseeable can be claimed
5
Q
negligent misstatement
A
- an incorrect statement that was given by D
- medley byrne v helier
6
Q
special relationship
A
- between D and C
7
Q
D must possess a special skill (SR 1)
A
- having expert knowledge on a specific subject
- mutual life v evatt/chaudry v prabhaker
8
Q
C must rely on the statement to their detriment (SR 2)
A
- C relied on a statement from D that caused them to suffer financial loss
- yianni v edwin evans
9
Q
reliance must be reasonable (SR 3)
A
- james mcnaughton v hicks anderson
10
Q
advice must be required for a purpose made known to the advisor (SR 4)
A
- D must know what C will do with the advice given
- caparo v dickman
11
Q
if advice will be passed on to the person relying on it, it must be known to the advisor at the time (SR 5, if applicable)
A
- caparo v dickman
