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Chaudry v Prabhakar [1989]

Facts

  • The defendant helped the claimant purchase a car, while not realising it was unroadworthy. The claimant relied on his advice and therefore suffered economic loss

Issue

  • As the advice was gratuitous, could the adviser be liable

Decision

  • Claim allowed

Reasoning

  • As the claimant believed the defendant was knowledgable about cars, there was reliance
  • This result has been criticised as Hedley Byrne was directed towards commercial disputes
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