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Commercial Law

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Negligent misstatement can lead to damage for economic loss without contract and fiduciary relationship between the parties. In this case, based on application of Donoghue v Stevenson principle, dam ... age can be in the form of pecuniary or economic even though it is not physical and can result from written word in spite of physical action. Hedley Byrne & Co v Heller and Partners Ltd (1964) Application3. Due to the fact the council certificate did not mention any specific warning or precaution about further possible affect to land he interested, he had no idea about this problem coming up and expected total area of land for building complex. Therefore, Peter’s loss of $1million land is direct result of negligent misstatement from Council and it was not too remote. Otherwise, it can be assumed that if the council mentioned about possible reduction of his land’s value, he would not have possibly bought the affected part of the land since he is a real estate developer who apparently searches land to build apartment for making profit. Since council’s action was negligent that directly caused loss to Peter, economic loss can be regarded as damage from negligent word even if it is not physical damage and not resulted from physical action. Conclusion3. Wollongong council’s negligent misstatement caused Peter economic loss [Show More]

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