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Esso Petroleum Co Ltd v Mardon [1976]

Facts

  •  Mardon severely underestimated the throughput of petrol in a petrol station due to changing circumstances which we was aware of
  • Esso relied on this estimation

Issue

  • In the proceeding contract, could Mardon be liable

Decision

  •  Liability allowed

Reasoning

  •  There was reliance and the Hedley Byrne principle was applicable
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