• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Economic Loss & Negligent Misstatements questions and answers

Extracts from this document...

Introduction

´╗┐Seminar 8 (Week 10): Economic Loss & Negligent Misstatements ________________ Sven, an accountant, is asked by Erik to value shares in Bell Enterprises Ltd to discover whether they are likely to prove a good investment. Sven and Erik are old friends and Sven states that he will value the shares for ?old times? sake? but that any statement which he makes as to the investment value of the shares is to be treated as a statement of opinion and that no reliance is to be placed thereon. Sven?s report states that the shares are certain to be a good investment. Erik leaks the report to the Morning Star, which duly publishes it. ...read more.

Middle

- Sven stated that he would value the shares for ?old times? sake? ? only an opinion and not to be relied on 2. Accountant ? Galoo v Bright Grahame Murray 2. Consider whether C?s economic losses recoverable from D in the following cases? 1. D advises C to invest his money in Bellnet plc. The company collapses and C loses his money. In order to meet his immediate financial needs, he has to borrow at a high rate of interest. 1. If D is a professional, and it was said in a professional (advice) circumstance then D will be liable for the loss. 2. However, if it is in a friend (social situation) ...read more.

Conclusion

C is given as a present a computer manufactured by D. There is a fault in the hard disk and C has to spend £500 putting it right. 1. Purely a present – there is no economic loss, as he did not buy the laptop it was a present, it was his choice to buy a new hard drive 1. C is given as a present a computer manufactured by D. There is a fault in the hard disk. As a result files containing the draft of his doctoral thesis are corrupted and C loses six months of his research work. 1. Would be hard to value what his research would cost? 2. Also a present 1. C has made a contract with X to maintain X’s central heating system for a fixed sum for a year. D negligently causes extensive damage to the system. 1. Liable for the damage caused ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Law of Contract section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Law of Contract essays

  1. Four ways in which a contract may be discharged.

    In the case of other loss or damage, a person cannot so exclude or restrict his liability for negligence except in so far as the term or notice satisfies the requirement of reasonableness. (3) Where a contract term or notice purports to exclude or restrict liability for negligence a

  2. Ian, an investment broker, wasapproached by Victor who asked him whether he should invest ...

    Victor must next prove that he was induced in the contract by the above statements. As representor does not render a contract voidable unless if induced the representee to enter the contract. There are 2 requirement to this:- i) misrepresentation must be addressed to party mislead, Peek v Gurney (1873)

  1. Contract Practice for Alpha construction LTD.

    CB 5.0 Production Information To discuss the nature of the production information. CB 6.0 Any other business CB 7.0 Date of next meeting To agree date of next meeting. CB Minutes 1.2 Project: Hertfordshire School of Construction Ltd Meeting: Progress Meeting (Theme 1)

  2. I have been asked to advise a client on considering contracting with a building ...

    The claimant read the advertisement, purchased the smoke ball and used it as directed. She contracted influenza and claimed her ´┐Ż100 reward. The manufacturers argued a number of defences, including the offer were so vague that it could not form the basis of a contract as no time limit was specified.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work