Which of the following would immediately allow a court to justify enforcing tort law's general regard for Lypam's pure economic loss as unrecoverable?

Question

Quizplus · Accepted Answer

The general rule in tort law is that pure economic loss (i.e. financial losses without any physical damage or personal injury) is not recoverable unless there is a pre-existing contractual relationship between the parties. Therefore, an absence of contractual relationship would immediately justify enforcing this rule, as it is a fundamental principle of tort law. The other options (reasonable person test, foreseeability test, breach in contractual relationship) may be relevant to determining liability in other types of tort cases, but they do not directly speak to the issue of recoverability of pure economic loss.

Which of the Following Would Immediately Allow a Court to Justify