Negligent misstatement Legal Cases Quiz

In the case of Hedley Byrne v Heller and Partners (1964), what did the claimants rely on?

• A statutory audit book

• A bank reference

• A friend's recommendation

• A special relationship

What was the legal principle established in Caparo Industries v Dickman (1990)?

• Negligent misstatement can be claimed even if the advice is given in a social situation

• A special relationship requires skill or knowledge of reliance

• A claim for negligent misstatement can be made when there is a special relationship between the parties

• The claimants relied on a bank reference

In Chaudhry v Prabhakar (1988), what did the claimant rely on?

• A statutory audit book

• A bank reference

• A friend's recommendation

• A special relationship

What is required for a special relationship according to the legal principle in Chaudhry v Prabhakar (1988)?

• Skill or knowledge of reliance

• A bank reference

• A statutory audit book

• A friend's recommendation

Must advice be communicated directly as part of a special relationship?

Answer explanation

Yes. It can’t, eg be communicated through TV, radio or a newspaper.

What are the Five requirements to establish a special relationship for negligent statement?

Answer explanation

1. Special skill or expertise of Advice giver

2 Reliance by the claimant on theis

3.Advice must be communicated directly.

4 must know the required purpose at the time at least in general terms and that it is being used for that purpose there is 5. no disclaimer

Is negligent misstatement an exception to the pure economic loss rule?

• Yes

• Don’t know

• No

• Say that again