A-Level Law: Negligent Misstatement

When can you claim for pure econ loss?

When C relies on a negligent inaccurate statement

Hedley Byrne v Heller

For D to owe a DoC there must be a special relationship

Requirements for special relationsjip

1) D posses skill or expertise - Chaudry

2) Must be reasonable for C to rely on the statement given

3) Must be communicated/known user of statement

4) D must know what the statement will be used for

5) D voluntarily take responsibility for the statement

How to answer

Prove statement was inaccurate

Prove special relationship between D and C

Prove D breached DoC and caused C a loss

Clues to tell if Q is about negligent misstatement

“ X advises/gives advise” + an amount of money