Essay about The Tort Of Negligent Misstatement

2534 Words Nov 13th, 2016 11 Pages
“Negligence is the omission to do something, which a reasonable man, guided upon those considerations, which ordinarily regulate the conduct of human affairs, would do, or do something, which a prudent and reasonable man would not do”, Blyth v Birmingham Waterworks Co(1856). The tort of negligent misstatement is ‘inaccurate statement made honestly but carelessly usually in the form of advice given by a party with special skill/knowledge to a party that doesn’t possess this skill or knowledge" (Willesee Bill, Law management 252, Curtin Handbook 2010).
Peter has a claim against Bumble & Co for negligently prepared financial statements which have caused him a financial loss. However, according to English law, when presenting a case of negligent behaviour, the claimant must prove that the defendant owed a duty of care to him and that there was a breach in duty, due to which he suffered damages.

In context of the duty of care, the claimant cannot assume that a duty is owed but must prove this. The concept of duty of care was first seen in Donoghue v Stevenson (1932), where Lord Atkins established the “neighbour principal”. In law, a neighbour is one who we can reasonably foresee being affected by our actions. Consequently, all courts use the standard of reasonable foresight as a measure of judging whether a defendant owes a duty of care, Home Office v Dorset Yacht Co Ltd (1970). Although the neighbour principal is the fundamental part of duty of care, over the years the courts…

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