PEL and negligent misstatement Flashcards

1
Q

what was established in spartan steel/weller

A

the law doesn’t allow claims for PEL resulting from D’s physical acts or omissions

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1
Q

what was established in Hedley Byrne

A

claims for PEL may be made in certain situations where there is a negligent misstatement

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2
Q

how many elements are there to proof proximity

A

six

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3
Q

element 1

A

D possess (or holds themselves out to possess) a special skill in relation to the statement

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4
Q

case for element 1

A

Esso v mardon

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5
Q

element 2

A

D knows (or ought to know) the purpose for which the advice is sought

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6
Q

case for element 2

A

Caparo v dickman - D didn’t know the purpose

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7
Q

element 3

A

D knows (or ought to know) that C is highly likely to rely on their statement

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8
Q

case for element 3

A

Smith v bush

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9
Q

element 4

A

if the party providing the advice voluntarily assumed responsibility for the advice, it indicates that there is a duty

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10
Q

case for element 4

A

Henderson v merrett

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11
Q

what was established in Hedley Byrne in element 4

A

a person has three choices
1) refuse to give advice
2) provide the advice with a disclaimer/warning
3) provide advice without disclaimer/warning

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12
Q

element 5

A

C must rely on the defendants statement which then led to their detriment

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13
Q

case for element 5

A

JEB v fasteners

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14
Q

element 6

A

it must be reasonable for C to rely on the statement. Consider several factors

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15
Q

using cases, what are the factors to consider on element 6

A

1) who was the advice given to?
Goodwill v BPAS
2) what was the context?
Chaudhry v prabhaker
3) what was actually said
4) should independent advice been sought
James v mcnaughton