Murray,a chartered accountant,gave free financial advice to Sabrina.He told her the Boom company "was sure to make money" and encouraged her to invest in it.In fact,Murray had not properly investigated the company.Sabrina followed Murray's advice and lost all of her investment.If she sued Murray for negligent misstatement which of the following tests would the court apply?

Question

Quizplus · Accepted Answer

All of the above tests are commonly applied in cases of negligent misstatement. A) Should Murray have reasonably foreseen that Sabrina would rely on the statement? - This is the foreseeability test. B) Was Murray's statement seriously made in serious circumstances? - This is the gravity or seriousness test. C) Did Sabrina reasonably rely on Murray's advice? - This is the reliance test. D) Did Murray fail to exercise reasonable care? - This is the standard of care test. Therefore, all the tests are relevant and would be applied by the court.

Murray,a Chartered Accountant,gave Free Financial Advice to Sabrina