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Paper 1 · Lesson 8 — Law of Agency and Negligence

Negligence elements

The elements of negligence (duty, breach, causation, damage) and negligent misstatement; intention is not an element.

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Question 1

A buyer relied on an agent's careless statement about a property's remaining tenure and, on the strength of it, paid materially more than he otherwise would have. He now sues in negligence. The agent protests that he never meant to mislead anyone and had no wish to see the buyer lose a cent, and says that settles the matter. The buyer's own adviser had earlier warned him that a claim of this kind is not made out merely by showing that the agent said something wrong.

Which statement is correct?

  1. A. No; a negligence claim succeeds only if the agent meant the loss to occur.
  2. B. No; that the agent misstated the tenure does not by itself suffice.
  3. C. Yes; but only if the agent was shown to have acted dishonestly.
  4. D. Yes; the agent's want of care caused the loss, whatever his intention.
Show the answer and full explanation

Answer: D

The rule. Negligence requires a duty of care, a breach of it, and damage caused as a result. Intention is not an element — it belongs to other torts. A careless misstatement relied on to the claimant's loss makes out the claim whatever the agent meant.

Why D is correct. The agent owed the buyer a duty over the tenure information, misstated it carelessly, and the buyer overpaid in reliance. That the agent meant no harm is beside the point.

The other options.

  • A treats intention as a requirement of the claim.
  • C demands dishonesty, which negligence does not.
  • B takes the adviser's true warning — that a wrong statement alone is not enough — and misreads it as defeating a claim where breach, reliance and loss are all present.

Exam note. Negligence is about falling below a standard, not about meaning harm.

Intention is not an element — it belongs to other torts →

Question 2

The prospective buyer who was told the unit had an approved food-and-beverage use withdrew before contracts and suffered no loss.

Which statement is correct?

  1. A. Serene is liable to him, the statement having been false and carelessly made.
  2. B. She is not liable in negligence, an element of the claim being absent.
  3. C. Serene is liable to him, a professional warranting the accuracy of what she states.
  4. D. Serene is liable to him only if she knew the statement was false when she made it.
Show the answer and full explanation

Answer: B

The rule. Negligence requires damage. A false and careless statement that causes no loss is not actionable in negligence.

Why B is correct. The buyer withdrew before contracts and suffered no loss, so an essential element is missing.

The other options.

  • A and C treat falsity or carelessness as sufficient.
  • D requires knowledge, which is not the test either.

Exam note. The statement was improper. It was not actionable *by this claimant*, because he lost nothing. Separate professional consequences are a different matter.

A false and careless statement that causes no loss is not actionable in negligence →

Practise it under exam conditions

Single questions test whether you know a rule. The paper tests whether you can find it in a scenario, at speed, with three plausible alternatives in the way. Start with the free 20-question half-paper.

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