Negligent misstatement

Negligent Misstatement

1. Normally cannot claim for this however here C may claim in negligence for an economic loss caused by relying on a negligently made statement.

2. To establish a DOC Hedley Byrne V Heller established 2
   conditions
   The statement was made negligently
   There is a "special relationship" between C&D
   Apply to scenario

3. Caparo V Dickman set out the conditions for a special relationship

1. Person giving advice must possess skills relating to advice given so D ought to have realised that C would rely on it- includes professing to have skill Mutual Life V Evatt

2. Party receiving advice acts in reliance and it was reasonable for C to rely on it
   JEB Fastners V Marks

3. Advice must be communicated directly NOT 3rd party

4. Person giving advice understood advice would be relied on and C would not take further advice

5. C aid rely and suffered a loss

6. D is not liable if statements are made in informal or social situations

-Unless D possess relevant expertise

Chaudry y Prabhaker

4. Remedies - damages