ABSTRACT
An important distinction is made between economic loss caused by a negligent act and economic loss caused by a negligent statement and different rules apply in each case. This chapter explains economic loss caused by negligent acts. In cases of personal injury or property damage caused by a negligent act the number of people affected will usually be quite small, for example, causing a road accident will only cause injury and property damage to a limited number of people. To claim for consequential economic loss the damage must be to the defendant or to their property. A negligent mis-statement can have more far reaching effects than a negligent act and the courts have developed special rules to deal with such statements. For example, a negligent mis-statement made on a television programme advising people to invest in a specific company could be acted on by thousands of people who all lose money as a result.
