TORT OF NEGLIGENCE

Tort of Negligence

Explain, with reference to case law and statute, the extent to which a professional person may incur liability for a negligent misstatement in the tort of negligence and the extent to which s/he may exclude any such liability.

Introduction

Business Law encompasses several laws that tend to protect professionals and corporate managers from various damages and violations. This legislation is designed to protect the business professionals from any potential violations of law by the other party. Among these torts, there is a specific law that extends various law proceedings in case the he negligently makes a misrepresentation. This paper will address the tort law of negligent misrepresentation in detail, highlighting its key provisions; and also discussing the liabilities on an individual if he commits the misrepresentation. We will also assess within the essay, the possibility of exclusion from such liabilities based on certain, defined conditions (Currie, Cameron, 2000).

Discussion

Many businesses are started with the signing of a contract. Unfortunately, many times the contract is not fulfilled. It is important to know what to do in these cases. There are many ways to breach a contract, and different ways to return it. Let us first discuss the definition of“damage” that is the foremost consequence of a negligent misrepresentation. The traditional approach, simply put, is that the damage which forms the 'gist of the negligence action' is the physical injury suffered by a plaintiff. Once it has been decided that the defendant has breached the required duty of care, the courts focus on determining whether there is a causative link between the breach of duty and the physical injury suffered, the traditional test being the 'but-for' test (Gerven, 2001). The traditional effect has been that any physical injury, 'more likely than not' caused by the defendant's breach, will be recoverable. But what if the physical injury suffered by a plaintiff is not, on the balance of probabilities, likely to have been accused by the defendant's breach can be reformulate the damage suffered, not as the physical injury, but rather as the 'lost chance' of avoiding the physical injury? Dr Stapleton argues in 'The Gist of Negligence” that the damage suffered would still have to be 'more likely than not' caused by the defendant's breach. The gist of the negligence action becomes the 'lost chance.' When examining such an argument, an important consideration has to be borne in mind. It is in fact possible to distinguish between two types of chances: 'statistical' and 'personal.' A statistical chance can only be an assessment, based on data collected from previous unconnected outcomes, giving a probability of that outcome in any non-individual case (Deakin, Johnston, Markesinis, 2008). When doing any kind of agreement, whether personal or business, it is important to write a contract. Having a contract creates a written obligation between two or more parties, or between companies. If a party fails to honor the terms of a contract, this is known as breach of ...