Law 2203 : Legal for Accounting and Finance

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LAW 2203 : LEGAL FOR ACCOUNTING AND FINANCE

INDIVIDUAL ASSIGNMENT (50%)

TOPIC : NEGLIGENT MISSTATEMENT

NAME                                :  CALLIE LIU

IC NUMBER                        :  960901-01-6770

MATRIX NUMBER        :  K14068804

PROGRAMME                :  B.A.(HONS) IN ACCOUNTING & FINANCE

LECTURER’S NAME :  MS. LEONA DOMINIC MOJILIU

SUBMISSION DATE :  11 NOVEMBER 2015

TABLE OF CONTENT[pic 3]

1.0                EXECUTVE SUMMARY

The term of negligent misstatement has been defined detailedly in the initial stage of this paper. To fulfill the main objectives of the task, the reviewing of development in Law of Tort for negligent misstatement is carried out. Case laws which includes neighbourhood principle, special relationship and pure economic loss concept all have underwent the explaining, examining and comparing process with their relational cases respectively. Some of them are : Donoghue v Stevenson, Hedley Byrne & Co v Heller & Partners Ltd, Caparo Industries plc v Dickman, and Royal Bank of Scotland v Bannerman. This paper is thus concluded by the provision of personal comments and suggestion.

2.0  INTRODUCTION

Tort of negligent misstatement^[1] is defined as an information or advice which contents nature of indecisive, improper or provided carelessly but sincerely by a parties to another which pay their reliance on it. An existence of duty of care towards parties who rely upon the information or advice provided is owed by the providing parties. Therefore, duty of care is the first of all important legal principles that would be reviewed and considered by the judges in cases regarding negligent misstatement. In addition, identical cases will only be accepted by court for judging under the condition which economic loss is experienced by the plaintiffs due to the breach of duty of the adviser who is also the defendant.

However, the development of the law of negligent misstatement which is relatively more continual than others has shown the possibility of the correlative legal principles to be deficient. Thus, in this paper, by reviewing the decision of Hedley Byrne v Heller and Partners^[2] case, each and every legal principles and concept under negligent misstatement accompanied with their relational cases would be inspected and interpreted. Those included are : Neighbourhood Principle, Special Relationship, and concept of Pure Economic Loss.