● Pure economic loss, not linked to the causing of tangible damage, is generally not recoverable in negligence.
● It is an aspect of duty of care.
● Pure economic loss can be divided into that due to the acquisition of a defective product or property and that resulting from a negligent misstatement.
● It is an area of commercial and professional importance and has shown a trend towards expansion in the area of negligent misstatement.
● The two key cases in this area are Murphy v Brentwood District Council and Hedley Byrne v Heller.
● The concept of assumption of responsibility has been developed as a justification for imposition of duty of care.
● Pure economic loss must be studied in conjunction with duty of care in Chapters 2 and 3.