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Negligent Misstatement: Breach Of Duty Of Care

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Introduction
Negligent misstatement is breach of duty of care between the professionals and their clients. It relates to a representation of fact which carelessly made and relied by another party which cause them in disadvantageous circumstance. The duty of care is a common law arrangement where the client expects a professional level which held by those in the profession. Negligent misstatement made by a professional is possible to cause economic loss to his/her clients. This is provided however that a special relationship or a sufficient proximity exists between the parties (“Negligent Misstatement – Law”, n.d.).
In addition, there are a few elements required to prove professional negligence. First, the negligence is committed in the ordinary …show more content…

There are different consequences of a breach of the fiduciary duty that arising from the negligent misstatement. The summaries case law below will be further emphasizing on the issue of negligent misstatement, fiduciary duty and special relationships.
In the law case of Chaudhry v. Prabhakar and Another (1989), the plaintiff has asked the defendant to help her to purchase a second car that no involved in accident before. The defendants owe a fiduciary duty towards the plaintiff and not making negligent misstatement. Nevertheless, the defendant has provided the negligent misstatement to the plaintiff which is the car has involved in the accident before and resulting in the loss of plaintiff.
Furthermore, the law case of Candler v. Crane Christmas & Co (1951), the plaintiff relied on the defendant account report to make an investment into the company project. The defendant owe a duty of care to all those whom rely on their account reports. Nevertheless, the company has gone bankruptcy and cause the plaintiff loss in his investment because of the defendant making a negligent misstatement which is carelessly prepared the account

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