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Economic Loss Caused By Negligent Misstatements And Services Notes

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Economic Loss caused by negligent misstatements and services Requirements for Hedley Byrne liability Actionable Damage Duty of Care

Policy: Actionable Misstatement o Express Statement of Fact
? May either be a partial statement which is true in itself but neglects relevant material that changes the accuracy of the whole statement

E.g. Used Car Salesman o Making a partial statement, true in itself e.g. tires are good
? But withholding information that changes nature of the disclosure e.g. major engine damage o You need full disclosure, not partial disclosure o You can't be economical with the truth
? OR a statement that purports to be whole but is completely or partially inaccurate o OR Opinion impliedly backed up by facts
? An opinion, underpinned by fact in that the representor believes it to be true and suggests he knows facts that justify this opinion

Where in fact, if representor had made proper inquiries into the facts, his opinion would be different. o Which is not intended to cause loss
? This falls under Fraud


Foreseeability: D ought to have foreseen that C will rely on the advice o Lord Morris in Hedley Bryne
? If in a sphere in which D is placed that others could reasonably rely upon his judgment ... to make careful inquiry,

D takes it upon himself to give information or advice to,

or allows his information or advice to be passed on to, o C who, as he knows or should know, will place reliance upon it,
? then a duty of care will arise


Proximity: And there both exists a special relationship between C and D o Much tighter than mere foreseeability that Z may rely on your words
? You don't need a contractual relationship

But you do need a sufficiently "proximate" one

Lord Devlin: where the relationship is one akin to contract o Or a contract would arise but for the lack of consideration

Lord Reid: o where it is plain that advisee was trusting advisor to exercise such a degree of care as the circumstances required,
? and where advisor gave the information or advice when he knew or ought to have known that the inquirer was relying on him

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