Negligence Law of Torts Term Paper

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Negligence Misstatements in the Law of Torts

This is a concept of contract law indicative of carelessly made facts by one party to another with the effect of luring that party into a contract. It could also be falsehood or false promises made by a trader while having no reasonable basis to believe it to be true, regarding the nature of products intended for sale are a classic example of negligence misstatement. It allows damages to the plaintiff where there is neither collateral contract nor fraud.[footnoteRef:1] [1: Witting, C. (2005). Liability for Negligent Misstatements. Oxford: Oxford University Press.]

Negligent misrepresentation was first seen in the case of Hedley Byrne v Heller [1964] A.C 465.[footnoteRef:2] This case was centered on economic loss that resulted from a negligent misstatement. Hedley Byrne in this case claimed that the information regarding Easipower Ltd., given to it by Heller and Partners Ltd., was given negligently and was misleading. This came after Hedley Byrne had requested for a financial background check on Easipower Ltd., who had given them a contract worth £17,000. Heller and Partners gave a positive reply that led Hedley Byrne into an ill-fated contract resulting to loss of the total amount.

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Heller on the other hand argued that there was no duty of care owed concerning the statements and liability was excluded. In this case, the notion that one party owes the other duty of care for comments made in reliance were rejected before the ruling was made rendering contract law as the only remedy.[footnoteRef:3] [2: Hedley Byrne & Co Ltd. v Heller & Partners Ltd. . (1964). AC 465.] [3: Elliott, C., & Quinn, F. (2007). Tort Law. London: Longman.]

In the case of Richard Ellis (WA) Pty Ltd. v Mullins Investments Pty Ltd. (in liq).[footnoteRef:4] The defendant Richard Ellis a real estate agent for Australia place had leased out two offices on the 6th and 7th floor for the plaintiff Mullins Investments Pty Ltd. Mullins in a bid to consolidate the office was offered alternative space on the 6th floor that was currently occupied by Citibank. The Mullins clarified to Mr. Swale the defendant's representative that they would not make any commitment until they re-let the original office. After seeking Swale's advice on the possibility of re-occupying the original office space, the Mullins received the advice through a letter. In the letter, Swale suggested that the.....

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