Comparison Between Bkfc And Mali Essay - 1664 Words

BKFC v Mali 5. Does the BKFC owe a duty to prevent pure economic loss of $2,500 caused by negligent words â€Å"huge profits† to Mali? It is necessary to consider the following salient features, alongside reasonable foreseeability, as concluded in Hedley Byrne v Heller. First, whether there was reasonable reliance. There is a significant level of reliance on Mali’s behalf as she quit her job, relying on the ‘huge profits’. Though it is unclear whether this was communicated to the BKFC, the BKFC should have reasonably known that an individual depositing $2500 for a stall at their festival, following their words ‘huge profits’, would have reliance. Further, James McNaughton Paper Group v Hicks can be applied with regard to the reasonableness of reliance, where the court concluded the plaintiff should have made their own enquiry into the business rather than relying solely on the defendant’s statement. Additionally, the contract Mali signed further reduces the reasonableness of her reliance. Secondly, whether the defendant was in a position of authority. The BKF C enticed Mali by stating she would gain â€Å"huge profits†, similar to the facts of Norris v Siberas wherein Norris induced Siberas to purchase a venue stating it will be a â€Å"gold mine†. However, unlike Norris v Siberas, wherein there was no relationship of proximity, the relationship between Mali and BKFC can be distinguished as it is closer to a commercial relationship. Thirdly, as the contract