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BTF1010 Tutorial 10 (lecture 9) CONTENT - Coggle Diagram
BTF1010 Tutorial 10 (lecture 9) CONTENT
Overview of Negligent Statements Causing Pure Economic Loss.
Elements/Steps of Negligent Misstatement.
1 - Does D owe a duty of care to P?
2 - Has D breached duty of care?
3 - Has P suffered damage?
4 - Are there any defences?
There are of relevance to accountants, auditors, financial advisors, bankers.
Negligent statements causing pure economic loss...
Negligent advice.
Negligent supply of information.
"Words" rather than "acts" which cause pure economic loss.
1 - Duty of Care.
Special Relationship:
Special Relationship:
An assumption of responsibility by D.
Reasonable reliance on P.
Esanda factors if P is a third party/advice or information was not provided at P's request.
2 - Breach of Duty.
Was it a foreseeable risk?
If yes, how would a reasonable person in D's position have responded?
3&4 - Damages, Defences.
3
CAUSATION ("but for" test): Was damaged caused by the breach?
REMOTENESS: Is damage too remote?
4
Contributory negligence.
Voluntary assumption of risk.
Peer professional opinion.
Other Legal Actions.
This is active when uncertainties exist in common law for negligent misstatement,.
Examples in ACL include
s 18
s 60