Which of the following is INCORRECT? Select one: a. A duty of care can arise where the defendant knew or should have known that the plaintiff will rely on the advice or information. b. A disclaimer can be effective in removing liability for a negligent misstatement. c. A duty of care can only arise where the defendant is actually aware that the plaintiff will rely on the advice or information. d. A negligent misstatement, whether spoken or written, can give rise to an action in negligence for financial loss.
Question
Which of the following is INCORRECT?
Select one:
a. A duty of care can arise where the defendant knew or should have known that the plaintiff will rely on the advice or information.
b. A disclaimer can be effective in removing liability for a negligent misstatement.
c. A duty of care can only arise where the defendant is actually aware that the plaintiff will rely on the advice or information.
d. A negligent misstatement, whether spoken or written, can give rise to an action in negligence for financial loss.
Solution
The incorrect statement is:
c. A duty of care can only arise where the defendant is actually aware that the plaintiff will rely on the advice or information.
This is incorrect because a duty of care can arise not only when the defendant is actually aware, but also when the defendant should have reasonably known that the plaintiff will rely on the advice or information. This is often referred to as "constructive knowledge".
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