Negligent Misrepresentation

Question 1

What makes a misrepresentation negligent?

Answer 1

there was no dishonesty in the representation - representor had a genuine belief

Question 2

What must be established for the common law approach for negligent misrep?

Answer 2

duty of care

Question 3

how is duty of care established for negligent misrep

Answer 3

1 - relied on statement
2 - must have known why advice was needed
3 - must have assumed responsibility to give advice

Question 4

what must be present to establish a duty of care?

Answer 4

special relationship

Question 5

Caparo industries case

Answer 5

key case for negligent misrep -
person giving advice must give the impression they possess some expertise or knowledge

Question 6

Hedley Byrne v Heller [1964]

Answer 6

recognised a duty of care with a special relationship

Question 7

who holds the burden of proof at common law for negligent misrep?

Answer 7

the misrepresentee (victim)

Question 8

Wagon Mound case

Answer 8

loss must be a reasonable consequence of the misrepresentation

Question 9

Misrepresentation Act 1967

Answer 9

statutory approach to negligent misrepresentation

Question 10

there is no need to prove a special relationship with statutory negligent misrep - true or false

Answer 10

true

Question 11

who holds the burden of proof with statutory negligent misrep, what must they prove?

Answer 11

representor must prove a genuine belief in their statement

Question 12

what are the remedies at statute for negligent misrep?

Answer 12

rescission or damages in lieu of rescission