How to answer a Problem Question on Pure Economic Loss?

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abdulrabp
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Is there a pattern and im really confused with the caparo test regarding its application with hedley case?
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Spud27
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The law was set out in Hedley Byrne showing the 3 parts needed to make a claim a) need for a special relationship b) for the Defendant to be an expert in the area of advice and c) reasonable reliance. However the courts were concerned about opening the floodgates so they added in the additional parts in Caparo I.e. known purpose, known user, that D knew the advice was to be acted upon, that there was actual reliance (I.e. they didn’t get advice from anyone else) and loss.

When you discuss the first two parts you have to make sure you state that a social relationship does not normally give rise to a duty but will do so in a Chaudhry v Prabhaker situation.
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